Taxes Applicable When Selling A Farm In Montana
                     Taxes Applicable When Selling 
A Farm In Montana
Some taxes should not be overlooked at any cost when 
selling a farm in Montana. The taxes are usually determined by the 
allocation of sales prices of the overall farm or ranch, including the 
assets. Here are the applicable taxes that can be deferred by 
professional guidance.
Depreciation Recapture – 25 percent of the profit 
acquired by selling depreciable capital property
Federal Ordinary Income Tax – 39.6 percent of the 
taxable income
Federal Capital Gain Tax – 15 to 20 percent of 
economic gains
State Taxes – applicable state tax varies from state 
to state. Montana residents have to pay 6.9 
percent tax.   
New Medicare Surtax – 3.8 percent Medicare 
Surtax is applicable to the net investment income.
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