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TIC Explained


TIC Explained

A TIC is an investment in a single large commercial income program by multiple program investors, not as limited partners, but as individual program investors. Each program investor receives an individual deed at closing for his or her undivided percentage interest in the entire income program. A TIC exchange qualifies as a 1031 exchange according the internal revenue code. The theory behind internal revenue code is that when a program investor has reinvested the sale proceeds into another income program, 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. TIC exchanges offer this and many more benefits to investing.

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