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A 1031 exchange is a real estate investing tool that allows investors to swap out an investment property for another and defer capital gains or losses or capital gains tax that you otherwise would have to pay at the time of sale.
Like-Kind 1031 Property Exchanges in Montana for Tax Purposes. Whether its Montana real estate or not, generally, if you exchange business or investment property solely for another business or investment property of a like-kind, no gain or loss is recognized under Internal Revenue Service (IRS) Code Section 1031.
The answer is yes, it is possible to trade into property located in another state. Under Internal Revenue Code Section 1031, real estate located in one U.S. state is like kind to real estate located in any other state, and you can trade from one state to another.
Example of a Tax-Free Exchange A taxpayer exchanges a medical office building worth $2 million and with an adjusted basis of $1.8 million for a similar building worth $2.1 million. The taxpayer pays the other party $100,000 in addition to the property given up.
An IRC 1031 Tax-Deferred Exchange represents a legal, strategic method for acquiring or selling qualified properties in exchange for Like-Kind properties within a specific time frame to defer capital gains taxes. You may be able to save substantial dollars by Exchanging property.

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Under IRC 1031, the following properties do not qualify for tax-deferred exchange treatment: Stock in trade or other property held primarily for sale (i.e. property held by a developer, flipper or other dealer) Securities or other evidences of indebtedness or interest. Stocks, bonds, or notes.
For example, a property in California can be exchanged for one in Texas. An exchange can be multiple properties. For example, you may sell one property and exchange into three and vice versa.Keep Your Equity! With 1031 ExchangeWithout 1031 ExchangeEQUALS: Equity Available to Reinvest$2,000,000$1,393,3752 more rows
For example, a property in California can be exchanged for one in Texas. An exchange can be multiple properties. For example, you may sell one property and exchange into three and vice versa.Keep Your Equity! With 1031 ExchangeWithout 1031 ExchangeEQUALS: Equity Available to Reinvest$2,000,000$1,393,3752 more rows
Under IRC 1031, the following properties do not qualify for tax-deferred exchange treatment: Stock in trade or other property held primarily for sale (i.e. property held by a developer, flipper or other dealer) Securities or other evidences of indebtedness or interest. Stocks, bonds, or notes.
Like-Kind 1031 Property Exchanges in Montana for Tax Purposes. Whether its Montana real estate or not, generally, if you exchange business or investment property solely for another business or investment property of a like-kind, no gain or loss is recognized under Internal Revenue Service (IRS) Code Section 1031.

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