Montana 1031 Exchange – What Are the Requirements for a 1031 Exchange in MT?

Hello. I’m Russell Marson, senior vice president with Investment Property Exchange Services.

You may wonder, is there any differences or anything unique about doing a 1031 exchange in the state of Montana?

The answer is really kinda no for the most part. Ten thirty one is federal, So you can buy and sell in every single state, and you can cross state lines with the 1031 exchange.

Although one thing, one provision that Montana has that’s kinda 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 a property in Montana and you ten thirty one 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 gonna 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. So if you have any questions about a 1031 exchange in Montana or any other state, don’t hesitate to give me a call.

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