Tenants In Common Explained
Tenants In Common Explained
A
1031 exchange permits
investment property owners to sell an
investment property and defer tax payments by reinvesting the proceeds into a like-kind investment
investment property or investment properties. 1031
tenants in common exchanges are a form of just such a like kind investment.
tenants in common ownership is an investment in which two or more persons have a fractional interest in an asset. A
tenants in common property owner has the same rights and benefits as a single
property owner of investment property. The theory behind IRC section 1031 is that when a
property owner 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. Tenants In Common exchanges offer this and many more benefits to investing.
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