1031 Exchange TIC Tenant In Common Transaction Tips

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The §1031 Tax Deferred Exchange Opportunity

It's a basic fact that the large tax burden that often accompanies the sale of an investment property can be a troubling issue for many property owners. Thankfully, this burden can be removed through an Exchange of real estate, effectively trading one investment property for another. The §1031 Tax Deferred Exchange offers a great solution for those needing to defer the capital gains tax that arises with the sale of real estate.

A successful exchange results in the taxpayer being able to utilize 100% of the proceeds from the sale of property to purchase a new property thereby deferring the capital gains taxes.

Real estate owners can pursue many different investment objectives with 1031 Exchanges including greater leverage, diversification, potentially improved cash flow, geographic relocation, and/or property consolidation.

If you are involved with investment real estate in any capacity whatsoever - whether experienced or a novice - you'll find the information offered at this site to be a powerful resource. Of course, this information is not intended to replace qualified legal and/or tax advisors. Every taxpayer should review their specific transaction with their own legal and/or tax counsel.

Here you'll find tips, techniques and strategies for the Exchange of investment real estate properties as well as comprehensive information about every critical aspect of the actual process itself. Tenant-In-Common ("TIC"), Delaware Statutory Trust ("DST") and §1031 - §721 UPREIT purchases are complicated transactions and while there are many advantages, can be fraught with peril. The risks of commercial real estate ownership aside, there also can be many advantages.

A §1031 Exchange into a fractional ownership interest (TIC or ST) allows property owners to exchange their management-intensive property for an institutional grade property with the potential to generate steady income, tax benefits and appreciation potential. In addition, it is often difficult in the short 45 day time frame to locate a property that has the right purchase price and debt ratio to meet the §1031 requirements, can be closed in a timely manner, and arrange for any financing that may be required. A Tenants In Common or Delaware Statutory Trust ownership interest has a number of additional advantages:

With a TIC or DST §1031 Exchange, you no longer have to feel burdened by your real estate. Through your management contract, a manager will be retained to manage the asset while you enjoy all the benefits of income property ownership - with no property management duties.

Your income from the replacement property may be higher than what was being received from the original property. You can potentially earn cash flow that may be up to 60% sheltered by the depreciation of the new basis in your TIC purchase.

Tenant-in-common offerings typically begin with an attractive cash-on-cash return. Of course, this is real estate, so the cash flow can fluctuate, up or down, based on many factors including, but not limited to, changes in tenant occupancy, expenses, market conditions and environmental issues.

Click here for a more in-depth understanding of the Tenant-In-Common (TIC) concept.

Click here for a more in-depth understanding of the Delaware Statutory Trust (DST) concept.

Click here for a more in-depth understanding of the 721 Tax Deferred UPREIT Exchange.

Without question, this web site is the information source for learning how to understand and implement a §1031 Tax Deferred Exchange.

The availability of a comprehensive knowledge base dealing with all aspects of a §1031 Tax Deferred Exchange has, up to now, been lacking and very hard to come by. You'll find this site to be one of the few places where you can easily collect the information you need and find the answers to your questions... on the entire §1031 Tax Deferred Exchange process, from start to finish.

You'll find that this site offers valuable information and "real-world" knowledge and techniques to implement and successfully complete a §1031 Tax Deferred Exchange that even highly experienced professionals have found invaluable. Investing in real estate is a process...a lot of ideas and knowledge that combine to create a successful investment that fully meets the needs of all the parties involved. To that end, this site also provides the knowledge necessary - for you, your employer or, as the case may be, your client - to respond appropriately to the issues of significance surrounding the more important and/or most misunderstood aspects of the §1031 Tax Deferred Exchange.

The first thing you need to do is to add this site to your bookmarks. This way you can repeatedly take advantage of the powerful techniques, tips, and strategies that you will find throughout this website. You can be assured that your time here will be well spent and that you will be both educated and enlightened, no matter your level of experience.

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