Skip to main content

Looking For Management-Free Investment? A TIC 1031 Exchange Is What You Need

What is TIC or Tenancy-in-common?

A TIC investment offers ownership in a real estate where two or more investors share an undivided, fractional interest in the asset. The shares of each investor in a TIC are not required to be equal, and ownership interests can also be inherited. Under a TIC arrangement, each co-owner receives a single deed at the time of closing for their undivided percentage of interest in the entire property. A TIC investor exercises the same rights and benefits as any sole owner of a property without the burden of managing the property. A TIC investment can either be privately arranged by investors or could be a syndicated TIC arrangement where a uniform set of rules apply to all investors. Most of the syndicated TICs are viewed as securities under federal security law.

Why should I do a TIC 1031 Exchange?

  • TIC investment is for investors who want to own institutional-grade investment properties that are managed by professionals, like office buildings, shopping complexes, corporate headquarters, and apartment buildings. TIC ownership can't be compared with REITs as the latter does not qualify for a 1031 exchange.
  • If you are tired of managing your investment property and no longer want to bear the pain but want to keep your investment running, TIC investment is for you. Using a 1031 exchange, you can defer the capital gain taxes on your relinquished property and reinvest the entire proceeds in a TIC property.

What you need to know?

Revenue Procedure 2000-37 has the guidelines for this type of investment. Any investment not conforming to these guidelines will be taxed normally, which means a big 'No' to the possibility of a 1031 exchange.
This kind of investment must be vigilantly scrutinized for potential financial risks. You may require the assistance of your advisor or a 1031 expert. These investments are illiquid, and investors can't interfere in the management of the investment.

Is a TIC 1031 Exchange investment beneficial for me?

Of course, it is. If you are selling your investment property and don't want to have management responsibilities on your new property, there is no reason why you shouldn't invest in TICs. Post your investment in a TIC property; you will start receiving your share of income on a regular basis.

How can I do a TIC 1031 exchange?

For that, we need a few information like your basis, equity, etc. You can give us a call at 888-993-2835 and speak to one of our 1031 exchange experts. They will assist you with everything related to investment. 
Labels:
Location: United States

Comments

Post a Comment

Popular posts from this blog

How 1031 Exchange into DST works?

How a 1031 Exchange Investment Works The properties can be used both as a business or a real estate investment that is exchanged under 1031 exchange. Capital gain taxes can be deferred On the sale of commercial property under the  1031 exchange   investment  of the investor. To avoid the capital gain taxes, the investor has to sell the property and reinvest the proceeds to buy property of equal or greater value and a like-kind property. The taxpayer has to identify the property within 45 days and has acquired the property within 180 days to defer capital gain taxes. There are eight steps or processes involved in the completion of the 1031 exchange , Although in real estate, 1031 exchange is commonly used. For an investor, a professional typically completes the step of the 1031 exchange as it is a complicated process. We will discuss the types of professionals to rely on during a 1031 like-kind exchange in the section below. The 8 steps involved in the  1031 exchange investm
Post a Comment
Read more

What Are The 1031 Exchange Rules In Delaware?

Delaware seems to be the perfect combination of appreciation, return, and safety. There are enough reasons to substantiate that. Check out the top reasons that make choosing a replacement property in Delaware for a 1031 Exchange a very lucrative deal – Why Do A 1031 Exchange In Delaware? • Assured rent by local US government, making it a safe investment option. • House prices in Delaware are one of the most inexpensive in the country since the last recession. • Huge potential for appreciation since Delaware housing hit lowest in 2012 and now continues to rise. • You can get a much higher return on investment due to low house prices since 2007 and stable rental rates with government housing demand. • Delaware also has the lowest property holding costs such as repairs, insurance, and property tax. • ZERO Sales Tax on goods and services for anything purchased in Delaware. • The cost of living in Delaware is meagre if compared to any other state, attracting lots of stu
Post a Comment
Read more

5 ESSENTIAL TIPS FOR A PROFITABLE 1031 EXCHANGE

1. Appoint a QI before selling your property Every step of a 1031 Exchange transaction, whether it's selling the relinquished property or the identification and purchase of the replacement property, needs to be performed with the help of a Qualified Intermediary (“QI”). A QI is essential for a profitable 1031 Exchange transaction. QI helps you to smoothly complete the otherwise complicated 1031 real estate exchange process, ensuring that all the IRS guidelines are correctly followed. A QI needs to be an independent entity bound by a written agreement with the investor to perform the exchange transaction. 2. Begin early After completing more than 150K+ successful 1031 Exchange transactions, the first advice we give to our clients is - "Start searching for replacement properties before you close. The 45-day identification period gets over instantly." 3. 1031 Exchange Time Period Guidelines IRS has issued precise identification period guidelines for a succes
Post a Comment
Read more