what are Montana transition adjustments

Forum|Forum|1 year ago
March 10, 2025
1 reply
0 views

No text available

SabrinaD2

Montana transition adjustments are used to reconcile differences between federal and Montana tax rules. These adjustments apply to passive activity losses, short-term and long-term capital losses, and any differing basis. You can elect to report these adjustments on your 2024 Montana Form 2.

For more details, visit the Montana Department of Revenue's Tax Simplification Resource Hub and scroll down to transition adjustments.

RentalsForMe

And what happens if we do not elect to "adjust" the differences in 2024? What happens in 2025 that might be adverse to not taking the adjustments in 2024?

BrittanyS

If the election is not made on the 2024 return when you file 2025, the carryover amount will be what was on the 2024 return. You will not be able to go back and make any adjustments that could benefit your carryover amount.

@RentalsForMe

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"