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1031 TIC Explained


1031 TIC Explained

An IRS 1031 exchange permits investment property investors to sell an investment property and defer tax payments by reinvesting the proceeds into a like-kind investment investment property or investment properties. 1031 1031 tic exchanges are a form of just such a like kind investment. 1031 tic ownership is an investment in which two or more persons have a fractional interest in an asset. A 1031 tic property investor has the same rights and benefits as a single property investor of investment property. The theory behind internal revenue code is that when a property investor has reinvested the sale proceeds into another investment 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. 1031 TIC exchanges offer this and many more benefits to investing.

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