Video Transcript
You may wonder, are there any differences or anything unique about doing a 1031 Exchange in the state of Montana? The answer is really kind of no for the most part. 1031 is federal, So you can buy and sell in every single state, and you can cross state lines with the 1031 Exchange.
Although one provision that Montana has that’s kind of surprising that not a lot of people know about is Montana is one of four states that has what’s called a clawback provision. So if you sell an investment property in Montana and you 1031 into another state and then you move out of the state of Montana as well, every year you’ll have to report to the state of Montana that you didn’t sell the property. Because in the year you do sell and cash out, you’re going to have to pay the state the tax. Now if you never cash out, then eventually that is forgiven through the estate process. So there is a way not to have to pay the tax. But besides that, it’s kind of all the same.
Understanding the Montana 1031 Exchange Process
If you have any questions about the Montana 1031 Exchange Processor any other 1031 Exchange topic, please visit our Montana IPX 1031 web page at www.ipx1031.com/montana. We’re happy to help.
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