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