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Bozeman Montana 1031 exchange company, 1031 Property Exchange has launched a new website. This Montana 1031 exchange company has been in business for nearly three decades and is the only 1031 exchange company domiciled in Bozeman.
“Our company has perormed hundreds of 1031 exchanges for investment real estate owners from Alaska to Florida and everywhere in between”, says Rusty Squire, President of 1031 Property Exchange. He adds, “Our company has+ been at this for so long we have completed exchanges in almost all 50 states”.
“What makes our company unique is 38 years of work history in real estate, development, finance, banking and building experience”, says Squire. He adds, “We have taught classes educating Realtors about 1031 exchange in dozens of communities across Montana and Wyoming”.
Complex Tax Planning Strategies
“One of the things that makes our company unique, aside from the decades of experience, is our ability to work with real estate investors on complex strategies like property bifurcation”, says Squire. He adds, “This is where an investor might split a large acreage primary residence into two distinct properties with the majority of the acreage held for investment purposes, even though it serves as a primary residence and there is no separate deed.”
Squire further alludes, “The primary residence is covered by the Section 121 exclusion whereas the larger acreage is covered by 1031 exchange”. He adds, “This often saves property owners tens of thousands of dollars in Federal and State capital gains taxes”.
“Other strategies can include converting investment property into a primary residence over time”, says Squire. He adds, “This works great when the property owner is willing to submit to 5 years of rental history with some personal use and then convert the property to a primary residence after 5 rental property tax returns have been filed”.
“My experience is that most of the property investors do not even have tax accountants that understand this stuff”, says Squire. He adds, “The IRS code is so complex that few, if any, accountants can even understand a small portion of it which is why our firm just specializes in 1031 exchanges”.
The rules of 1031 exchange are quite complex and primarily involve holding property for business, or investment, purposes according to Squire. He explains, “People get confused here, it is the Section 121 exclusion that covers the gain on a primary residence but once you look at rentals, or raw land, you need to use a 1031 exchange to avoid Federal capital gains tax, State capital gains tax, the Obamacare tax and depreciation recapture”. He adds, “These taxes can often go north of 30% on every dollar of gain, so it adds up fast”.
“The other place people get confused is with the use of the term “like-kind property”, says Squire. He adds, “Like-kind only means that you have to be exchanging from real estate into real estate, so you can go from a ranch to multi-family, commercial or any other type of property that is considered an investment”.
“For Bozeman 1031 exchange clients there really is no better option than our company 1031 Property Exchange”, says Squire.
If you would like more information regarding saving taxes on investment property then simply call Rusty Squire at 406-425-2742 or visit them online.
Release ID: 361011