TIC Explained

A 1031 tax deferred exchange permits investment income real estate real estate owners to sell an income real estate and defer tax payments by reinvesting the proceeds into a like-kind investment income real estate or income real estate. 1031 TIC exchanges are a form of income real estate asset ownership in which two or more persons have a fractional interest in an asset. A TIC real estate owner has the same rights and benefits as a single real estate owner of income real estate.Completing a 1031 tax deferred exchange with a TIC interest ownership in an income real estate allows real estate owners not only to defer their capital gains taxes, but also to use all of the proceeds from their sale to leverage into more valuable income real estate investments.

If you are thinking of transferring any income real estate, contact us today for more information on 1031 TIC exchanges.