Tenants In Common Explained
A
tenants in common exchange is a type of
1031 starker exchange that serves as an alternative to sole ownership of real estate.
tenants in common exchanges offer several benefits to the
real estate investor, including deferred tax.The theory behind IRS section 1031 is that when a
real estate investor has reinvested the sale proceeds into another real estate, 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. Tenants In Common exchanges offer this and many more benefits to investing.
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