Montana: federal FIRPTA at closing, state tax via return. We handle the federal piece end-to-end for sellers, buyers, and Montana closing agents, with same-day intake response on every deal.
Montana has individual income tax but does not collect it at the closing table. A foreign seller closing in Montana pays only the federal FIRPTA 15% at closing — the state tax on the gain is paid later, via the Montana nonresident return filed in the year following the sale.
This is a common source of seller surprise: the closing statement shows only federal FIRPTA, then the state return arrives the next April with an additional liability the seller didn't budget for. We brief every Montana foreign-seller client on the state-return timing before closing so the cash flow planning is accurate.
FIRPTA is federal — every Form 8288, 8288-A, and 8288-B routes to the IRS Ogden Service Center regardless of property location. We coordinate with Montana title companies, closing attorneys, and foreign sellers across:
No closing-table withholding. Montana has individual income tax but does not collect it from the closing proceeds. The foreign seller files a nonresident return in Montana the year following the sale and pays state tax on the gain at that point.
Yes. Montana taxes the gain at its individual income tax rate via the state's nonresident return the year after closing. Because nothing is withheld at closing, the foreign seller pays the state liability out of pocket when filing — we brief every foreign-seller client on this cash-flow timing so it isn't a surprise.
Yes. FIRPTA is a federal tax regime; the IRS Ogden Service Center processes every Form 8288, 8288-A, and 8288-B regardless of the property's state. We coordinate with Montana title companies and closing attorneys nationwide via email, secure file upload, and our intake at firptaincometaxwithholding.com/#intake. Same-day response on every intake.
Same-day response. No fee to your title company. No surprises at closing.