Bozeman Montana 1031 Exchange

08/29/2021

We often get asked, "Can I improve a property I buy in a 1031 exchange?". The answer is yes, but you have to set it up properly and have your construction well organized because all exchange funds have to be used inside 180 days.

12/31/2019

Just posted a new article on how to avoid taxes when selling business property held in an LLC. Happy New Year.

1031 exchanges can have the wheels come off where a limited liability company, or LLC, is involved. Why is that?

11/15/2019

Have partners in commercial real estate in an entity called an LLC? Well, it's a partnership and it can screw.you to the wall in a 1031 exchange if all partners are not willing to exchange.

I have seen this happen over several decades. Think of doctors offices, or any professional practices, it happens to all of them. One partner does not want to exchange and it screws it up for everyone.

So what is the solution?

Simple, change each partners interest into a tenancy in common, a divided and deeded interest. This way, one partners decision cannot adversely impact the ability of all other partners.

11/09/2019

Divorce and the sale of investment property, some things you really should know.

So, I got a call the other day from a woman who is selling investment property and she was recently divorced. She had a divorce decree stating that the land shall be equally divided, which is great, but the deed needs to be changed at the County courthouse to match this decree.

Most married couples hold land in an ownership form called joint tenancy with rights of survivorship (JTWROS). What this means is that if one party dies the entire asset defaults to the surviving party.

In a 1031 exchange you must maintain the same title registration from the relinquished property (the one you are selling) into the replacement property.

This type of JTWROS registration could have been problematic because if she were to die her ex-husband would have been the sole owner of her new investment property.

THE SOLUTION

By re-registering the property as tenants in common prior to the sale, each spouse would then own a divided and deeded interest that would stay with their own estate.

By visiting the local County courthouse, furnishing the divorce decree and re-registering the property as tenants in common this women potentially helped save herself a lot of heartache down the road.

04/26/2019

Here is a blog post we made today for 1031 Property Exchange to help real estate investors understand the various levels of property taxation.

Taxation of investments is an area that often leaves people with crossed eyes, let's face it, it is complicated and an ever evolving target because over time legislation and codes change.