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Tenancy In Common Explained


A 1031 exchange permits 1031 property property owners to sell a commercial property and defer tax payments by reinvesting the proceeds into a like-kind 1031 property or commercial properties. A tenants in common is a form of ownership that permits participants to enjoy the rewards of commercial property ownership without participating in the ongoing management of a commercial property. A tenancy in common exchange yields an inherent interest in commercial property and offers several benefits as a qualified 1031 exchange. The theory behind internal revenue 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. Tenancy In Common exchanges offer this and many more benefits to investing.

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