Crow Hollow Ranch is situated in Montana’s legendary Paradise Valley. This majestic property which was once inhabited by the Crow Indians encompasses a diverse topography with 198 +/- deeded acres, over a half mile of Suce Creek, a beautifully designed period-style farm house, historic caretaker’s home, and log cabin…all tucked privately into a dramatic valley with National Forest, and BLM lands surrounding the ranch. List Price $3.6 Million
How The Fiscal Cliff Legislation Affects Real Estate
NAR Government Affairs summary of “fiscal cliff” legislation as passed by the House and the Senate. President Barack Obama has signed the agreement into law.
Real Estate Provisions in “Fiscal Cliff” Bill
Below is a summary of real estate related provisions in the bill:
Real Estate Tax Extenders
• Mortgage Cancellation Relief is extended for one year to Jan. 1, 2014
• Deduction for Mortgage Insurance Premiums for filers making below $110,000 is extended through 2013 and made retroactive to cover 2012
• 15 year straight-line cost recovery for qualified leasehold improvements on commercial properties is extended through 2013 and made retroactive to cover 2012.
• The 10 percent tax credit (up to $500) for homeowners for energy improvements to existing homes is extended through 2013 and made retroactive to cover 2012.
Permanent Repeal of Pease Limitations for 99% of Taxpayers
Under the agreement so called “Pease Limitations” that reduce the value of itemized deductions are permanently repealed for most taxpayers but will be reinstituted for high income filers. These limitations will only apply to individuals earning more than $250,000 and joint filers earning above $300,000. These thresholds have been increased and are indexed for inflation and will rise over time. Under the formula, the amount of adjusted gross income above the threshold is multiplied by three percent. That amount is then used to reduce the total value of the filer’s itemized deductions. The total amount of reduction cannot exceed 80 percent of the filer’s itemized deductions.
These limits were first enacted in 1990 (named for the Ohio Congressman Don Pease who came up with the idea) and continued throughout the Clinton years. They were gradually phased out as a result of the 2001 tax cuts and were completely eliminated in 2010-2012. Had we gone over the fiscal cliff, Pease limitations would have been reinstituted on all filers starting at $174,450 of adjusted gross income.
Capital Gains
The Capital Gains rate stays at 15 percent for those at the top rate of $400,000 (for individuals) and $450,000 (for those filing a joint return). After that, any gains above those amounts will be taxed at 20 percent. The 250/500k exclusion for sale of principle residence remains in place.
Estate Tax
The first $5 million dollars in individual estates and $10 million for family estates are now exempted from the estate tax. After that the rate will be 40 percent, up from 35 percent. The exemption amounts are indexed for inflation.
Source: National Association of Realtors
Market Update/Recently Sold
MARKET UPDATE
The real estate market in Montana continues to improve, but is not back to the robust environment prior to the national banking crisis of 2008. Housing under $200,000 accounted for much of the market activity across the country, with Park County paralleling this trend.
Montana is also seeing an increased number of buyers seeking investment in ranch and recreational properties as an alternative to market driven investments.
RMP had a busy year brokering everything from iconic local businesses to beautiful mountain acreages, ranches, and riverfront homes…
RMP’s MOST RECENTLY CLOSED SALE:
BANGTAIL RANCH
Bridger Canyon/Bozeman
SOLD – Listed at $4.5 Million
260 Acres with hay pasture, spring creek, shop and reclaimed timber home providing access to hundreds of miles of hiking, biking and skiing trails. Abundant wildlife, 360 degree views and minutes to Bridger Bowl Ski area & Downtown Bozeman.
Buyer represented by Tracy Raich, RMP/Seller represented by B Elfland, Fay Ranches
Raich Montana Properties LLC Listed in the “2011 America’s Best Brokerages” issue of The Land Report
This publication is known as “The Magazine of the American Landowner”. In this issue leading land brokerages in the US are listed by region. Raich Montana Properties LLC is listed under brokerages in the West (page 49). Each real estate firm is required to provide a compilation of transactions for the year, and share the firm’s business philosophy and provide market insights.
Here’s a recap of the magazine listing for Raich Montana Properties LLC:
Who: Raich deals in ranches and recreational properties in Livingston Montana’s Paradise Valley.
Philosophy: As a one-person firm, her focus is on personal attention for each client instead of handling a large volume of transactions.
Raich’s Market Insight: Raich enjoyed a steady business during the year. She predicts there will be continued investment in this market which may result in a depletion of inventory leaving a scarcity of truly amazing ranch and recreational properties in Livingston’s Paradise Valley.
2011 Sales: <$50 Million Category, with transactions totalling $17.1 Million in 2011 (The Land Report’s computation method).
