Under Tenant in Common (TIC) ownership there is co ownership of a property by two or more investors. Title to the property is held by each owner rather than by a corporation, partnership or LLC. Each owner has an undivided interest in the property and shares in his proportionate part of net income, tax benefits and appreciation. In brief, a TIC owner has the same rights and benefits as a single owner of property.
Although the TIC ownership form has been used for many years, its popularity has been increasing dramatically since the IRS issued Revenue Procedure 2002-22. Essentially this pronouncement gives guidelines for TIC replacement property ownership structure which, if followed, gives validity to the TIC arrangement for tax purposes. Such guidelines or conditions cover matters such as Voting Rights, Proportionate Sharing of Income, Management Agreements and the Co-ownership Agreement.
Exchangers often have difficulty in locating suitable replacement property, obtaining suitable financing, clearing title issues etc. within the 45 day identification period and the 180 day closing period. A properly “packaged” TIC investment significantly reduces these risks because it comes with financing and management already in place.
TIC EXPLAINED
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TIC ADVANTAGES
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TIC FAQ
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