TIC - Tenant In Common 1031

Allow a Tenant in Common Exchange Transform your Real Estate Investment Strategy

When a real estate investment property owner holds interest property concurrently with someone else, they are said to hold title in the form of Tenant in Common. A Tenant in Common interest to the title provides an undivided share in the entire parcel of the land. A real estate investor has unlimited use and enjoyment of the land. They are however, entitled to the prorated share of the capital gains, liability, income and expenses of the investment property. So for real estate investors looking to defer their capital gains and depreciation recapture taxes a Tenant in Common 1031 Exchange is always an attractive tax vehicle to take advantage of this stipulation in the IRS Code. The TIC 1031 Exchange is an attractive option for savvy real estate investors who would like to retain as much of their capital gains as they flip their investment properties.

Why a Tenant in Common 1031 Exchange is an Attractive Option for the savvy real estate investor:

• TIC 1031 Exchanges Offers Flexibility to your Real Estate Investment Strategy



• TIC 1031 Exchanges Allow Investors to Diversify their holdings into several properties



• TIC 1031 Exchanges Allows Investors to Bypass the Headaches of Investment Property Management and Ownership

Three Things to know about 1031 TIC Exchanges :

• Time Limitations: Once the old property has been closed in escrow you have 45 days to identify three potential properties. The new 1031 TIC exchange property must close escrow within 180 days of the close of the old property.



• Qualified Intermediary: The 1031 TIC Exchange must be handled by an independent Qualified Intermediary. A savvy real estate investor relies on the up-to-date knowledge and expertise of an independent Qualified Intermediary, as the IRS tax code is a dense, verbose and ever-changing tax code, that requires an adept understanding of the potential issues which if handled incorrectly can significantly cut into the return on investment.



• 100% Reinvestment: 100% of the funds from the proceeds of the sale of the old investment property must be reinvested into the purchase of a like-kind or greater property new exchange property.

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