II 109th CONGRESS 1st Session S. 2077 IN THE SENATE OF THE UNITED STATES November 18, 2005 Mr. Sessions introduced the following bill; which was read twice and referred to the Committee on Finance A BILL To amend the Internal Revenue Code of 1986 to allow income averaging for private forest landowners.

1.

Short title

This Act may be cited as the Tax Relief for Private Forest Landowners Act of 2005.

2.

Income averaging for private forest landowners

(a)

In general

Section 1301 of the Internal Revenue Code of 1986 is amended by redesignating subsection (c) as subsection (d) and by inserting after subsection (b) the following new subsection: (c)

Treatment of sale or exchange of timber

For purposes of this section— (1)an individual who sells or exchanges timber shall be treated as engaged in a farming business, and (2)income which is attributable to the sale or exchange of timber shall be treated as income attributable to a farming business. . (b)

Effective date

The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act.