Family Forestland Preservation Tax Act of 1997

TABLE OF CONTENTS:

Title I: Estate Tax Provisions

Title II: Income Tax Treatment

Family Forestland Preservation Tax Act of 1997 - Title I: Estate Tax Provisions - Amends the Internal Revenue Code to exclude from a gross estate, for estate tax purposes, the value of a qualified conservation contribution.

Provides a special estate tax valuation based on the use of a decedent's forestland in timber operations. Provides for the recapture of estate tax if such real property is disposed of by an heir or devisee and for failure to use the property in timber operations.

Title II: Income Tax Treatment - Provides taxpayers a partial inflation adjustment for the deduction from gross income for qualified timber gain. Allows such deduction in computing adjusted gross income.

Excludes from gross income the applicable percentage of qualified timber gain from the sale or exchange of property used in timber operations to a governmental unit for conservation purposes.

Excludes from conditions of the material participation rules, for purposes of the passive loss limitations, closely held timber activity if the aggregate hours devoted to management of the activity for any year is generally fewer than 100 hours.