Tenant In Common
A Tenant In Common is when a real estate investor owns a percentage of a specific property along with other owners, usually more than three. Each owner holds a piece of a particular property, and neither owns the entire entity. A Tenant in Common is a "smart" investment as the property maintenance is usually handled by building management.
The (TIC) Option with a 1031 Exchange
There are many rules when it comes to using the Tenant In Common (TIC) option with a 1031 exchange. Timelines must correctly be met, and identifying more than one piece of potential property is often a wise choice. Even if you only intend to acquire one piece of property, locating two or three will ensure a deal falling through will not have you stuck with a possible capital tax gain from not meeting the appropriate timelines set by the IRS.
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