FOR SALE: THINNED AND FERTILIZED PPIC® WITH 13.5% TAX-ADVANTAGED RETURN
In early 1987 we planted the seedlings for LA87040MMB, a 40.4-acre PPIC in East Feliciana Parish,
Louisiana. We thinned it in the typical JMV&CO manner in December and fertilized it by air with 200
pounds of N and 50 pounds of P per acre in April 1999. Here's what they look like in June 2001 at the
start of their 15th growing season. You can see that the tract is darker than the one we
offered several weeks ago because the fertilizer has caused the trees to add more needles.
We now offer to sell our interest in the tract for $55,673. To maintain his ownership, the new owner must make
ten (10) year-end payments of $7,595.20 to the landowner (Col. Mark M. Boatner, who lives elsewhere on the tract)
and ten annual payments of $444.40 for annual inspections, accounting, and management. During our ownership, part
of the payments to Boatner and all of them for inspections were deductible; all our profits from timber growth
were taxable as long-term gains.
A very large amount of detailed information about the history of the tract appears on
www.se-timbersales.com. Click on the map of Louisiana and then on
LA87040MMB. Prior to the thinning, we measured our typical sample of all trees in the stand and selected the worst
for removal. We then used PTAEDA2V to predict the stand table at each year-end until 2008. Also included is a
schedule of predicted cash flows.
If you want to look at or buy the tract, call Jim Vardaman at 800+455-4568 or e-mail him at
jacksonms@vardaman.com. There is a locked gate at the access road
into it.
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