TIC Explained




TIC Explained

An exchange permits investment property investors to sell a commercial property and defer tax payments by reinvesting the proceeds into a like-kind investment commercial property or commercial properties. 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 property investor has the same rights and benefits as a single property investor of commercial property. 1031 Exchanges allow property investors to use all of the proceeds from the initial sale of commercial property to invest in other like kind commercial properties. Many property investors use TIC exchanges as a method for entering more lucrative commercial property deals. Tic's increase cash flow and diversify investment portfolios while at the same time consolidate investments into one commercial property.

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