Real estate investment trusts (“REITs”) allow individuals to invest in large-scale, income-producing real estate. A REIT is a company that owns and typically operates income-producing real estate or related assets. These may include office buildings, shopping malls, apartments, hotels, resorts, self-storage facilities, warehouses, and mortgages or loans.

Unlike other real estate companies, a REIT does not develop real estate properties to resell them. Instead, a REIT buys and develops properties primarily to operate them as part of its own investment portfolio.

In Montana, as in other states, Real Estate Investment Trusts (REITs) are governed by federal tax law, specifically by the Internal Revenue Code (IRC). REITs must comply with certain IRS requirements to qualify as a REIT, such as investing at least 75% of total assets in real estate and paying at least 90% of taxable income in the form of shareholder dividends each year. Montana does not have specific statutes that uniquely regulate REITs; instead, they are treated like other corporations for state tax purposes and must comply with the same registration, reporting, and taxation requirements as other businesses in the state. Investors in Montana can invest in REITs to gain exposure to real estate markets without directly buying or managing properties. It's important for investors to consult with an attorney or tax advisor to understand the specific implications of investing in REITs, including the potential tax benefits and risks associated with such investments.