1031 Tax Exchanges

Montana Real Estate Agent for Like-Kind and 1031 Tax Exchanges 2012 - Real Estate Properties in Bozeman, Belgrade, Big Sky, Gallatin Gateway, Manhattan, Three Forks, Livingston, Ennis, Dillon.

Like-Kind Exchanges - Real Estate Tax Tips

Check Your Montana State Income Tax Bracket

Generally, if you exchange business or investment property solely for business or investment property of a like-kind, no gain or loss is recognized under Internal Revenue Code Section 1031. If, as part of the exchange, you also receive other (not like-kind) property or money, gain is recognized to the extent of the other property and money received, but a loss is not recognized.

Section 1031 does not apply to exchanges of inventory, stocks, bonds, notes, other securities or evidence of indebtedness, or certain other assets.

Like-Kind Properties

Properties are of like-kind if they are of the same nature or character, even if they differ in grade or quality. Personal properties of a like class are like-kind properties. However, livestock of different sexes are not like-kind properties. Also, personal property used predominantly in the United States and personal property used predominantly outside the United States are not like-kind properties.

Real Properties generally are of like-kind regardless of whether the properties are improved or unimproved. However, real property in the United States and real property outside the United States are not like-kind properties.

Find Montana Real Estate Source Income Tax Information 

1031 References and Related Topics

Example of the Benefits of Exchanging vs Selling

Let's assume a sale Price of $250,000.00 with a loan of $100,000.00, and the property was purchased for $150,000.00 a few years ago.

Capital Gain: $100,000.00

Capital Gain Tax:
$100,000.00 x 28% = $28.000.00

  ******

Sales Purchase

Exchange

Sale Proceeds

$150,000.00

$15000.00

Tax Payable

($28,000.00)

NONE

Cash Available
For Investment

$122,000.00

150,000.00

Investment with 25% down

$488,000.00

600,000.00

This example demonstrates an additional $112,000 of purchasing power.

 Montana Property Tax Information

 

Photo Taunya Fagan Montana Real Estate

 

 

giving you the advantage...®

 

Taunya Fagan Bozeman Real Estate   406.579.9683   taunya (at) taunyafagan.com

 

Real Estate Reciprocal Links Resource  

 

Search Bozeman Real Estate Beyond   |   Realty Watcher   |   Luxury Homes - Luxury Property

Testimonials     Bozeman Schools - Public, Private, Post Secondary   |   About Taunya Fagan

Featured Listings   |   Contact Taunya   |  1031 Tax Exchanges   |   Relocation   |   Detailed Listings

Area Resources   |   Real Estate Data   |   Interest Rates   |   Bozeman News   |   Loan Information

Financing    |   Montana Ranches    |   Marketing Real Estate   |   About Bozeman & Gallatin County

About Belgrade Montana   |   About Big Sky Montana    |   About Livingston MT & Park County

About Manhattan Montana   |   Montana Ski Resorts   |   Get My Home's Value  |   Bozeman Homes