                                 CODE OF VIRGINIA

TIMBER (§ 64.2-1059)

A. To the extent a fiduciary does not account for receipts from the sale of
timber and related products as a business under § 64.2-1050, the fiduciary
shall allocate the net receipts:

   1. To income, to the extent the amount of timber cut from the land does not
   exceed the rate of growth of the timber;

   2. To principal, to the extent 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;

   3. 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 subdivisions 1 and 2; or

   4. To principal, to the extent advance payments, bonuses, and other payments
   are not allocated under subdivisions 1, 2, or 3.

B. In determining net receipts to be allocated under subsection A, a fiduciary
shall deduct and transfer to principal a reasonable amount for depletion.

C. This section applies to land owned or held by a fiduciary whether or not a
settlor was cutting timber from the land before the fiduciary owned or held the
property.

D. If a fiduciary owns or holds an interest in land used for growing and cutting
timber before July 1, 2022, 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 July 1, 2022. If the fiduciary acquires an interest
in land used for growing and cutting timber on or after July 1, 2022, the
fiduciary shall allocate net receipts from the sale of timber and related
products as provided in this section.

HISTORY: 2022, c. 354.