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Tenant In Common Explained

A tenant in common is an investment in a single large commercial investment property by multiple owners, not as limited partners, but as individual owners. Each owner receives an individual deed at closing for his or her undivided percentage interest in the entire investment property. A tenant in common exchange qualifies as a 1031 IRC exchange according the IRS section 1031. Completing a 1031 IRC exchange with a tenant in common interest ownership in an investment property allows owners not only to defer their capital gains taxes, but also to use all of the proceeds from their sale to leverage into more valuable investment property investments.

If you are thinking of transferring any investment property, contact us today for more information on 1031 tenant in common exchanges.




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