Tenants In Common Explained
1031 tenants in common exchanges are a form of investment property asset ownership in which two or more persons have an undivided, fractional interest in the asset. Each co-property owner receives an individual deed at closing for his or her undivided percentage interest in the investment. tenants in common exchanges qualify as a type of 1031 exchange and thus offer several benefits to the property owner, including deferred capital gains taxes on all like kind investment exchanges. Performing a 1031 exchange allows property owners to use all of the proceeds from the initial sale of investment property as leverage for entering into more lucrative investment property deals. The advantages of entering into a tenants in common are increased cash flow and diversified investment portfolios while deferring capital gains taxes at the same time.
If you recently sold an investment investment property or you’re considering selling a current investment investment property, we can match you with a TIC advisor that can assist you in facilitating the exchange process.