How can real estate be used as an estate planning tool?

by Liz Nitz

Purchasing commercial or residential real estate that can generate rental income is an excellent way to pass wealth onto the next generation.

 

Why?

  • Real estate that can be rented provides ongoing cash flow and rental income for you
  • Capital gains earned while buying and selling real estate can be offset if using 1031 exchange for purchase or portion of purchase. A 1031 exchange is a swap of one investment property for another.
  • If 1031 is executed correctly, there is no capital gain tax on the sale of property.
  • Real estate investment can grow tax deferred.
  • Excellent form of estate planning as the tax burden is relinquished upon death. Heirs do not pay tax on exchanged property capital gains. Heirs inherit property at its stepped up market rate value.
  • You may deduct mortgage interest for financed portion of purchase price from your taxes
  • You can depreciate the property at either at 27.7 or 39 years depending upon property
  • You can gain accelerated depreciation with cost segregation strategy on taxes
  • You and your heirs realize equity gain as property appreciates during holding period
  • You and your family get to enjoy your investment during your ownership!

 

*Please check with your accountant for specifics on these rules.

 

Please contact us about using real estate as an investment.

 

Liz 406 499 4218.

Liz@rangepropertiesmt.com

Share

No Comments

Post A Comment

Short term and mid term rentals

With the banning of new short term rental properties in the city of Bozeman, investors are wondering if a Bozeman property is right for their portfolio. Even though new short term rental properties aren’t allowed, we think that considering property for mid term rentals is

Read More →

Summer is Coming and the Bridgers are Calling !

Here comes summer…and the thousands of people who descend on Bozeman to take advantage of our cool little city with its great restaurants, hip shops and it’s incredible proximity to the backcountry. Most people stay in Bozeman and then venture out but the Bridger Pines

Read More →
New on the MLS

Latest Listings

The following homes listed below were just listed in the last 7 days. This seller’s market is hot so we keep a close eye on the latest inventory. Subscribe below for instant updates of your ideal criteria.

Sort Option
  • Listing ID
  • Built up Area
  • Price
  • Pictures
  • Add date
  • Featured
Grid
List
Map
RSS

7775 Bridger Shadows Road, Bozeman, Montana 59715, Bozeman, Montana 59

7775 Bridger Shadows Road, Bozeman, Montana 59715, Bozeman, Montana 59715

5Bedroom(s)
5Bathroom(s)
20Acre
5,493Sqft
Impeccably constructed new home located in Bridger Canyon. Boasting almost 6000 +/- sq ft and over 8500+/- sq ft of pure luxury under roof, this home and barn is located on 20 acres in coveted Bridger Canyon. Located just ten miles from downtown Bozeman and 10 minutes from Bridger Bowl Ski area, this brand-new custom home has it all.
$7,600,000

140 Village Crossing Way 3H, Bozeman, Montana 5971, Bozeman, Montana 5

140 Village Crossing Way 3H, Bozeman, Montana 5971, Bozeman, Montana 59715

2Bedroom(s)
2Bathroom(s)
1,183Sqft
Welcome to your beautiful new home at 140 Village Crossing Way, nestled in downtown Bozeman! This turn-key property offers a perfect blend of modern comfort and breathtaking natural beauty, boasting stunning views of the majestic Bridger Mountains. The open-concept layout of the living area creates an inviting atmosphere, ideal for entertaining or simply unwinding after a day of adventure.
$765,000

315 N Tracy Avenue 406, Bozeman, Montana 59715, Bozeman, Montana 59715

315 N Tracy Avenue 406, Bozeman, Montana 59715, Bozeman, Montana 59715

1Bedroom(s)
2Bathroom(s)
1,301Sqft
With incredible southwestern views from multiple angles from this fourth floor unit in downtown Bozeman’s premier new luxury condominium building, The Henry, you’ll feel like you’re living in the clouds while only being blocks from Main Street.
$1,320,000

140 Village Crossing Way 2G, Bozeman, Montana 5971, Bozeman, Montana 5

140 Village Crossing Way 2G, Bozeman, Montana 5971, Bozeman, Montana 59715

1Bedroom(s)
1Bathroom(s)
867Sqft
Don’t miss this Village Loft Condo in the heart of downtown Bozeman offering exceptional unobstructed Bridger Mountain views from second floor balcony, perfect for enjoying the fresh Montana air.
$520,000

2400 W Durston 42, Bozeman, Montana 59718, Bozeman, Montana 59718

2400 W Durston 42, Bozeman, Montana 59718, Bozeman, Montana 59718

2Bedroom(s)
2Bathroom(s)
1,647Sqft
Discover the charm of Willowbrook in this meticulously maintained condo, offering a prime location with shops and parks just a short walk away.
$630,000

937 Auger Lane, Bozeman, Montana 59718, Bozeman, Montana 59718

937 Auger Lane, Bozeman, Montana 59718, Bozeman, Montana 59718

5Bedroom(s)
2Bathroom(s)
0.19Sqft
2,917Sqft
Welcome to your dream home in the sought-after Flanders Mill subdivision! This stunning single-family residence boasts 5 bedrooms and 2.5 bathrooms, offering ample space for comfortable living and entertaining. As you step inside, you'll be greeted by an inviting open floor plan featuring light hardwood floors that flow seamlessly throughout the main level.
$1,300,000

718 W Babcock Street 204, Bozeman, Montana 59715, Bozeman, Montana 597

718 W Babcock Street 204, Bozeman, Montana 59715, Bozeman, Montana 59715

1Bedroom(s)
1Bathroom(s)
720Sqft
Welcome to the SOBO Lofts downtown Bozeman! One of the very few condo complexes in DT Bozeman to allow for short term rentals. Efficiently laid out is this contemporary 720 square feet, 1 bed, 1 bathroom, with den perfect for a sofa bed, Murphy bed for additional sleeping quarters, or dedicated office space. Modern finishes, SS appliances, washer and dryer, with dedicated parking.
$667,000

519 W Babcock, Bozeman, Montana 59715, Bozeman, Montana 59715

519 W Babcock, Bozeman, Montana 59715, Bozeman, Montana 59715

5Bedroom(s)
3Bathroom(s)
0.15Sqft
2,945Sqft
Explore the enchantment of this charming craftsman-style home nestled in downtown Bozeman. Numerous original features, including exquisite hardwood flooring, beautifully preserved cabinetry, and ceiling decor that echoes the timeless elegance of its construction. This residence is a true homage to craftsmanship and character.
$1,350,000

136 Stewart Loop, Bozeman, Montana 59718, Bozeman, Montana 59718

136 Stewart Loop, Bozeman, Montana 59718, Bozeman, Montana 59718

4Bedroom(s)
2Bathroom(s)
1.30Sqft
2,294Sqft
On 1.3 acres. this home offers 4 bedrooms, 3 car attached garage, and separate ADU. So much to offer here! Main home has great floor plan with 3 bedrooms on the main level, including the primary suite with en-suite bathroom & walk-in closet. Two additional bedrooms and 1 full bath also on the main level.
$1,375,000
78 Results returned.Per Page