Combined rate and how to defer it in Montana.
Montana has no sales tax, but its 5.90% income tax on capital gains pushes the combined investment property rate to 29.7% (20% federal + 3.8% NIIT + 5.90% state).
Montana taxes capital gains as ordinary income at up to 5.90% at the state level. Combined with federal, the total is 29.7%. Estimate the full bill with depreciation recapture in the capital gains tax calculator.
A 1031 like-kind exchange defers the combined 29.7% rate by reinvesting all proceeds into a qualifying replacement property. Model the exchange in the 1031 exchange calculator and check your deadlines with the timeline calculator.