Tenant In Common 1031 Exchange
The benefits of performing a Section 1031 exchange can be numerous for the investor. From the deferral of state and federal capital gains tax to diversification completing a 1031 exchange TICs can be very advantageous. However, many are not aware that it is not necessary to exchange a single ownership property for another single ownership property. A 1031 exchange can be complete with the acquisition of a tenant in common (TIC) as well. On its own, the tenant in common can be quite beneficial. It offers the investor the opportunity to obtain commercial property with a minimum investment. The tenant in common can also provide steady income, as co-owners each receive pro rata income. Co-owners also share in the tax benefits and appreciation of the property. Each owner receives a deed and is essentially a direct owner of the property. Combined with a 1031 exchange, the tenant in common can be even more advantageous. Basically, investors who perform 1031 TICs enjoy the benefits of the deferral of capital gains taxes while being able to upgrade their investing into institutional-grade properties. Often, investors are able to own larger, more attractive properties through TICs than they could have if they'd stuck with single ownership. There are plusses and minuses that are unique to TIC ownership. TM 1031 Exchange has successfully handled hundreds of TIC investments for 1031 exchange investors. Please contact us so we can discuss in more detail if a TIC is a good option for you. Timing is of the utmost importance when it comes to 1031 TIC exchanges. At TM 1031 Exchange, we seek to help investors like you find the properties they desire in an efficient manner. To learn more about our services and get started on your investment property search, call us toll-free at 1-877-4TM-1031 or send e-mail here team@tm1031exchange.com.
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