|
|
 |
| home > 1031 t.i.c. structures > frequently asked questions |
|
| Frequently asked questions |
|
|
|
Question: What is a T.I.C. (Tenants-in-Common) ownership?
A T.I.C. is a form of real estate asset ownership in which two or more persons or entities have an undivided,
fractional interest in the asset, where the percentage of ownership is not required to be equal, and where ownership
interests may be inherited or independently transferred. Each co-owner receives an individual insurable deeded interest
at closing for the undivided interest in the entire property. Through T.I.C. ownership, the average person is able to
enjoy ownership in institutional-quality property with a limited investment.
Question: What purchase amounts are ordinarily required for T.I.C. ownership?
The 2002-22 Revenue Procedure issued by the IRS allows up to 35 T.I.C. owners in any one property.
Minimum purchase requirements are structured to meet this limitation and can range as low as USD 50,000 equity.
Question: Is there any liability exposure associated with T.I.C. ownership?
The mortgages on most of our T.I.C. properties are non-recourse. The T.I.C. debt structure generally allows
for the debt financing to be assumed on a pro-rata basis. Assumption usually occurs without the need for
qualification or loan assumption fees.
Question: What if I want to sell my T.I.C. ownership?
Subject to a co-tenancy agreement governing the relationship between the various co-owners,
any owner may sell his ownership position, subject to offering the interest to the remaining owners first.
AmCorp Realty Corporation will typically assist with the sale and market the fractional interest to our investor base,
enabling the conversion from real property to cash liquidity in a minimum amount of time.
Question: What happens to my T.I.C. ownership if I die?
Just like any other asset you own, your T.I.C. interest will pass to your heirs pursuant to your will.
Currently, the estate tax code provides that your heirs will receive a stepped-up tax basis to fair-market value.
However not all circumstances are alike. It is important that you consult with your CPA or tax advisor. The income
taxes which were deferred at the time of your 1031 exchange may be potentially forgiven forever.
Company | Acquisition Strategy | 1031 T.I.C. Structures | Properties | Contact
|
| |
|
|
|
|
