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If I choose to exclude a SIP payment from income tax, is it subject to recapture if I later sell my forest land?

April 26, 2017EXCLUDE later payment recapture sell SIP Subject

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If I choose to exclude a SIP payment from income tax, is it subject to recapture if I later sell my forest land?

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It depends on when you sell your property. Taxes on SIP payments are subject to recapture in full if you sell the property within 10 years of claiming the exclusion. The amount subject to recapture decreases 10% each year after that until there is no recapture after 19 years.