TIC’s & 1031’s

Internal Revenue Code 1031 offers the real estate investor a powerful tax deferral strategy in wealth management. The 1031 exchange allows property owners to dispose of an investment property without paying a capital gains or a depreciation recapture tax. Our affiliate 1031 service provider is among the best in the business, and you may even qualify for a No Cost 1031 Exchange.

A RealtyNet TIC 1031 Exchange gives investors the ability to diversify their 1031 Exchange into more than one property and to participate in potentially larger, institutional quality properties; maximizing the values of their portfolios. Although a tenant-in-common exchange (“TIC Exchange”) is not really a 1031 exchange in and of itself, it is an industry term used for the combined process of selling a relinquished property, utilizing a 1031 exchange, and acquiring a tenant-in-common interest in real property (see IRS Revenue Procedure 2002-22).

TIC properties offer many advantages to 1031 exchange clients, real estate brokers, and other investment professionals. The benefits of TIC ownership include: low investment minimums, larger institutional-type properties, passive income, simplicity, ability to diversify 1031 funds among multiple properties, and safety.

TIC’s & 1031’s Are An Advantageous Combination

It’s often difficult to identify a suitable property of an equal value within the short, 45 day time frame and 200% rules mandated by IRC §1031; but identifying a RealtyNet TIC property can expand your options. When you identify a RealtyNet Tenant-in-Common property as a replacement property, you will:

  • Always have an actionable option, should you fail to identify or acquire an alternative replacement property
  • Match your exchange value dollar for dollar (see Benefits of a TIC)
  • Always achieve maximum tax deferral benefit
  • Lower your risk by diversifying your investment portfolio
  • Avoid taxation on boot amounts boot
  • Find a flexible, low maintenance replacement property
  • Increase your potential for regular, secure cash flow
  • Realize all the tax benefits of ownership in smaller properties with less rick and more credit worthy tenants

And Less Hassles Too

You may already own management-intensive real estate such as a duplex, condominium, or other investment property, but are tired of daily headaches and hassles that accompany management of smaller real estate. If you’re ready to trade the hassles of dealing with tenants, maintaining facilities, paying property taxes, etc.; then a RealtyNet property is likely the right investment for you. RealtyNet’s ‘institutional grade’ properties are Net Lease and the rent is collected by an independent management company and forwarded; so you won’t feel burdened by your real estate.