Mobile Home Park Exclusion

March 22, 2022

Senate Bill 269 was passed during the 67th Montana Legislative Session. The bill increased the amount of the exclusion (from adjusted gross income) for the eligible sale of a mobile home park. Beginning with the 2021 tax year, the exclusion is now 100% of the capital gain from a qualifying sale. 

Qualifying sales must be made to one of the following: 

  • A tenants’ association or a mobile home park residents’ association 
  • A nonprofit organization purchasing on behalf of a tenants’ or mobile home park residents’ association 
  • A county housing authority 
  • A municipal housing authority 

Qualifying sellers include individuals, corporations, partnerships, S corporations, and disregarded entities. If the exclusion is taken by a partnership, S corporation, or disregarded entity, it must be attributed to the respective partners, shareholders, or other owners in the same proportion as reported on the corresponding Montana income tax return.