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TIC Explained


1031 TIC exchanges are a form of commercial property asset ownership in which two or more persons have an undivided, fractional interest in the asset. Each co-property investor receives an individual deed at closing for his or her undivided percentage interest in the investment. TIC exchanges qualify as a type of 1031 exchange and thus offer several benefits to the property investor, including deferred capital gains taxes on all like kind investment exchanges. Completing a 1031 exchange with a TIC interest ownership in a commercial property allows property investors not only to defer their capital gains taxes, but also to use all of the proceeds from their sale to leverage into more valuable commercial property investments.

If you are thinking of transferring any commercial property, contact us today for more information on 1031 TIC exchanges.