Tenant In Common (tic) Explained


A tax deferred 1031 exchange permits investment commercial property property owners to sell a commercial property and defer tax payments by reinvesting the proceeds into a like-kind investment commercial property or real estate properties. 1031 tenant in common (tic) exchanges are a form of commercial property asset ownership in which two or more persons have a fractional interest in an asset. A tenant in common (tic) property owner has the same rights and benefits as a single property owner of commercial property.The theory behind IRS 1031 tax code is that when a property owner has reinvested the sale proceeds into another commercial property, the economic gain has not been realized in a way that generates funds to pay any tax. Therefore, it would be unfair to force the taxpayer to pay tax on a paper gain. Tenant In Common (tic) exchanges offer this and many more benefits to investing.

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