Tenant In Common Explained
A
1031 starker exchange permits investment
commercial property real estate investors to sell a
commercial property and defer tax payments by reinvesting the proceeds into a like-kind investment
commercial property or real estate properties. 1031
tenant in common exchanges are a form of
commercial property asset ownership in which two or more persons have a fractional interest in an asset. A
tenant in common real estate investor has the same rights and benefits as a single
real estate investor of commercial property.The theory behind section 1031 is that when a
real estate investor has reinvested the sale proceeds into another commercial 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. Tenant In Common exchanges offer this and many more benefits to investing.
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