New! Limited opportunity in Ennis Montana for investors or individuals needing a 1031 exchange. Learn More

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

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969 Nelson, Bozeman, Montana 59718

969 Nelson, Bozeman, Montana 59718

3Bedroom(s)
2Bathroom(s)
2.10Acre
2,379Sqft
Sitting on 2.1 acres with NO zoning and NO covenants this home is ready for its next adventure. This single level home is 2379 SF with 3 bedrooms and 2 full baths. Stunning views of the Bridger Mountains and room for your business or farm animals! There are several out buildings already in place including a barn, shop, detatched garage and garden shed.
$1,200,000

645 Baxter E, Bozeman, Montana 59718

645 Baxter E, Bozeman, Montana 59718

3Bedroom(s)
1Bathroom(s)
20Acre
1,157Sqft
Almost unlimited possibilities for this prime investment and development opportunity! This property is 20 acres of flat buildable land with a 5000sqft shop and 900sqft residences which can stay or be cleared. It's conveniently located off Baxter Ln. near Jackrabbit Ln. is right in the center of the valley and the current development trends.
$6,500,000

621 E Lamme, Bozeman, Montana 59715

621 E Lamme, Bozeman, Montana 59715

1Bedroom(s)
1Bathroom(s)
0.12Acre
640Sqft
Can't beat this location! Historic home for sale in downtown Bozeman. One bedroom, 2 bath house lovingly maintained by owner. This home has been in the same family since it was built in 1898. Painted inside and out within the past two years, newer fridge, washer and dryer, windows, doors, and plumbing. Lawn mower also conveys.
$599,000

3575 Stucky Road, Bozeman, Montana 59718

3575 Stucky Road, Bozeman, Montana 59718

3Bedroom(s)
2Bathroom(s)
10Acre
1,683Sqft
One Of A Kind Property! 10 Acres!! This Unique Property Offers A Little Bit Of Everything. One Of The Best Locations You Will Ever Find! Many Options. Horses Welcome! Additional Dwelling Unit Already In Place. Have You Ever Wanted Two Shops? Look No Further! The Home Was Remolded in 1992 And Has Hardwood Floors Throughout The First Floor. Lots Of Elbow Room On Main Floor As Well.
$1,800,000

662 Coffee Creek, Bozeman, Montana 59715

662 Coffee Creek, Bozeman, Montana 59715

5Bedroom(s)
2Bathroom(s)
20Acre
5,478Sqft
Spectacular views from this custom log home on 20 acres offers the classic Montana lifestyle. Iconic touches from national park lodges have been used throughout this “Parkitecture” design featuring massive timber beams, a soaring two-story fireplace, and tremendous mountain views.
$1,865,000

1806 W Durston Rd, Bozeman, Montana 59715

1806 W Durston Rd, Bozeman, Montana 59715

5Bedroom(s)
2Bathroom(s)
0.17Acre
2,320Sqft
Here is your chance to spring into action on that investment property that you have been searching for. Two separate living quarters for possible in-law suite. Prime Bozeman location with great access to Montana State University, shopping, and Downtown Bozeman. Not to mention the ability to take advantage of Bridger Bowl & Big Sky Ski Resort as winter approaches us.
$697,000

2940 W Villard 1F, Bozeman, Montana 59715

2940 W Villard 1F, Bozeman, Montana 59715

2Bedroom(s)
2Bathroom(s)
1,020Sqft
Investor buyers! Due to owner occupied ratios & informal HOA this is a cash purchase. This Meadow Vista condo is an upstairs end unit with mountain views. Light & bright with the many windows. Open floor plan with 2 bedrooms and 2 baths. One bedroom is a master with full bath. The second bedroom has the full bath across the hall. Wood floors through out. Kitchen with white appliances and cabinets.
$339,000
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