Administrative Rules of Montana
Department 42 - REVENUE
Chapter 42.9 - PASS-THROUGH ENTITIES
Subchapter 42.9.5 - Disregarded Entities
Rule 42.9.502 - DISREGARDED ENTITIES - SOURCING GAIN OR LOSS ON THE SALE OF AN INTEREST
Universal Citation: MT Admin Rules 42.9.502
Current through Register Vol. 6, March 22, 2024
(1) Gain on the sale of an interest in a single member limited liability company (LLC) that is a disregarded entity is sourced to Montana as if the single member LLC did not exist and the assets of the LLC are owned directly by the sole member (or sole member and spouse, if applicable). The following example illustrates how this rule is applied:
(a) Nonresident individual C is the sole
member of LLC D. LLC D is a single member LLC that is disregarded as a separate
entity for tax purposes. LLC D's only asset is rental property located in
Montana. If nonresident individual C sells his interest in LLC D, the
transaction is sourced to Montana in the same way that the gain would be
sourced if C owned LLC D's assets directly and sold them.
15-1-201, 15-30-2620, MCA; IMP, 15-30-2101, 15-30-2110, 15-30-3302, 15-30-3311, MCA;
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