1031 Tax Deferred Exchange And Tenant In Common: The Main Advantage Is Being Able To Defer Paying Capital Gains Tax - Part 1

A few years back or more precisely in March of the year 2002, the IRS came out with its Rev. Proc. 2002-22 that laid out the parameters that spelled out how structure TIC transactions would enable investors to complete 1031 TIC exchange while also recognizing the fact that the exchange involved valid investment property (like-kind). This is perhaps the most important aspect as far as 1031 Tax Deferred Exchange and Tenant in Common goes.

Not A New Concept

In fact, 1031 Tax Deferred Exchange and Tenant in Common is not something with which people were not already conversant with because in fact, most people are well aware of saving money through deferring paying capital gains tax provided they did the 1031 exchange in the proper manner. As a matter of fact, everybody knows that TIC is nothing but being able to co-own properties and furthermore, as long as such co-ownership is organized in the proper manner, investors may get out of hundred percent ownership in properties that they have relinquished and instead get into co-ownership or exchange into properties in which they have fractional ownership or TIC as it is also commonly known as.