Florida Statutes 738.412 – Timber
Current as of: 2024 | Check for updates
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(1) To the extent that a fiduciary does not account for receipts from the sale of timber and related products as a business under s. 738.403, the fiduciary shall allocate the net receipts:
(a) To income, to the extent that the amount of timber cut from the land does not exceed the rate of growth of the timber;
Terms Used In Florida Statutes 738.412
- Contract: A legal written agreement that becomes binding when signed.
- Fiduciary: A trustee, executor, or administrator.
- Fiduciary: includes a trustee, a trust director as defined in…. See Florida Statutes 738.102
- Income: means money or other property a fiduciary receives as current return from principal. See Florida Statutes 738.102
- Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
- Principal: means property held in trust for distribution to, production of income for, or use by a current or successor beneficiary. See Florida Statutes 738.102
- Settlor: means a person, including a testator, who creates or contributes property to a trust. See Florida Statutes 738.102
(b) To principal, to the extent that the amount of timber cut from the land exceeds the rate of growth of the timber or the net receipts are from the sale of standing timber;
(c) Between income and principal if the net receipts are from the lease of land used for growing and cutting timber or from a contract to cut timber from land by determining the amount of timber cut from the land under the lease or contract and applying the rules in paragraphs (a) and (b); or
(d) To principal, to the extent that advance payments, bonuses, and other payments are not allocated under paragraph (a), paragraph (b), or paragraph (c).
(2) In determining net receipts to be allocated under subsection (1), a fiduciary shall deduct and transfer to principal a reasonable amount for depletion.
(3) This section applies to land owned or held by a fiduciary regardless of whether a settlor was cutting timber from the land before the fiduciary owned or held the property.
(4) If a fiduciary owns or holds an interest in land used for growing and cutting timber before January 1, 2025, the fiduciary may allocate net receipts from the sale of timber and related products as provided in this section or in the manner used by the fiduciary before January 1, 2025. If the fiduciary acquires an interest in land used for growing and cutting timber on or after January 1, 2025, the fiduciary must allocate net receipts from the sale of timber and related products as provided in this section.