Tenants-In-Common
Tenant-In-Common: Disadvantages
What Are The Disadvantages of a Tenant-In-Common?
- IRC 1031 Tenants-In-Common (TIC) investments are illiquid and there is no active secondary market for TIC investments.
- IRC 1031 TIC investments may have high fees and expenses associated with them. These fees and expenses may outweigh any tax benefit potentially available in a TIC Exchange. Investors should consult their professional tax advisor for advice prior to investing in an IRC 1031 TIC Exchange.
- Specific replacement properties, including IRC 1031 TIC investments, may not qualify under IRS Revenue Procedure 2002-22. Investors should consult qualified legal counsel and request an independent third party opinion to ensure qualification as a replacement property and Safe Harbor provisions.