1031 TIC Exchanges

As a tenant in common owner, you hold a deed to your piece of investment property. Since TIC is not a partnership, you can sell your fraction of the property just like you would sell any other asset. It is classified as an investment property, so you can dispose of your asset and buy another one while deferring taxes under Section 1031 of the IRC.

If you are doing a 1031 exchange, you can exchange your TIC property for single ownership, or vice versa. If you want to relinquish your 1031 interests, you can use your capital to purchase a property of similar value and avoid paying capital gains taxes until you realize a gain. Similarly, if you own real estate and want a more passive income, you can relinquish your property and replace it with a TIC property of similar value.

Selling TIC Property through 1031 Exchanges

Selling your TIC real estate is the same as selling any other real property. Just because you share it with other owners does not mean you can't sell your interests. Since you hold a deed, you are considered an owner. It is a non-partnership agreement and therefore you can buy or sell TIC properties just like other properties.

Section 1031 has some strict requirements, but it is flexible in many ways. Take advantage of this tax shelter to trade up your investments. Grow your portfolio by exchanging TIC real estate while deferring your capital gains tax until you finally sell it and actually show a profit.