- 1031 Exchanges
- Tenants-In-Common
- Exchange Details & Requirements
- Real Estate Professional
Dual Registration Program - Tax Professionals, Legal Advisors & Northland Securities1031
- About Us
- The Tax Deferred Exchange
- How to Initiate an Exchange
- 1031 Exchange Requirements
- Do's & Don'ts of 1031 Exchange Planning
- Can Your Tax Professional or Legal Advisor Be Your Qualified Intermediary?
- Exchange Terminology
- Like-Kind Property
- 1031 Qualified Property
- Delayed Exchange Deadlines
- Tenants-In-Common Interests
- Master Lease-Tenants-In-Common
- Non-Tax Reasons to Exchange
- Role & Selection of a Qualified Intermediary
- Role of a Tax Professional or
Legal Advisors - Disqualified Parties
- Tenants-in-Common Research &
Due Diligence Reports - Exchange Language
Tenants-In-Common Interests
Tenants-In-Common (TIC) ownership is an investment in a large institutional quality property by up to 35 accredited investors. At closing, a TIC owner receives an individual deed for his or her undivided fractional interest in the entire Tenants-In-Common property.
Tenants-In-Common property owners have the same rights as an individual property owner and share in a proportionate share of net income or losses, gain or loss of market value, tax benefits and risks associated with a Tenants-In-Common investment property.
IRC Tenants-In-Common (TICs)
Advantages
- Defer Capital Gains
- Diversify or consolidate properties.
- New depreciation schedule
- Increased cash flow
- Reduce or eliminate management responsibilities
- Diversification by geographic location, number and type of properties and size of investment
Disadvantages
- Lack of liquidity and no secondary market
- TIC investments may have high fees and expenses that outweigh potential tax benefits.
- Specific replacement TIC properties may not qualify under IRS Procedure 2002-02.
Tax professionals, legal advisors and qualified intermediaries should be consulted to determine if a Tenants-In-Common property investment qualifies for Safe Harbor provisions. Northland Securities does not provide tax or legal advice. Tenants-In-Common properties offered through Northland Securities are available by official offering memorandum to eligible accredited investors.