Tenancy in common investments (“TIC” or “TIC Investments”) have become a booming industry in the United States in recent years. A tenancy in common investment (better known as a TIC) is an investment by the taxpayer in real estate which is co-owned with other investors.
When you sell investment property, all of your profits are subject to either capital gains tax or depreciation recapture tax, which is a special type of capital gains tax. Your tax gets calculated on the difference between your cost basis and your selling price.
1031 Tax Deferred Exchanges offer real estate investors a unique channel to maximize long-term returns. By leveraging an exchange, investors can often increase their real estate yield, reduce hands-on management, mitigate federal and state taxes and capitalize on emerging investment trends.
This webcast will highlight:
Why investors use 1031 exchanges
The mechanics of tax-deferred exchanges
Real exchange examples to demonstrate the benefits
A strategic long-term perspective of real estate investing
While the extensions were provided for good reason, there may be unintended consequences if eligible investors all wait to pull the trigger on their exchanges near or at the time of the deadline.
So, what is 1031? Broadly stated, a 1031 exchange (also called a like-kind exchange or a Starker) is a swap of one investment property for another. Special rules apply when depreciable property is exchanged in a 1031. Such complications are why you need professional help when you’re doing a 1031. Here are 10 things you should know.