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What is TIC - 1031 TIC Exchanges?
1031 TIC Exchanges are a form of real estate asset ownership in which two or more persons have an undivided, fractional interest in the asset, where ownership shares are not required to be equal, and where ownership interests can be inherited.
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 Do's and Don'ts
DO advanced planning for the exchange. Talk to your accountant, attorney, broker, financial planner, lender and Qualified Intermediary.
DO NOT miss your identification and exchange deadlines. Failure to identify within the 45-day identification period, or failure to acquire replacement property within the 180-day exchange period will disqualify the entire exchange. Reputable Intermediaries will not act on back-dated or late identifications.
DO keep in mind these three basic rules to qualify for complete tax deferral:
- Receive only "like-kind" replacement property.
- Use all proceeds from the relinquished property for purchasing the replacement property.
- Make sure the debt on the replacement property is equal to or greater than the debt on the relinquished property. (Exception: a reduction in debt can be offset with additional cash; however a reduction in equity cannot be offset by increasing cash.)
DO NOT try to do a 1031 exchange yourself using your CPA or attorney to hold title or funds. IRS regulation requires a Qualified Intermediary to properly complete an exchange. Call us for the name of one that operates in your area.
DO attempt to sell before you purchase. Occasionally exchanges find the ideal replacement property before a buyer is found for the relinquished property. If this situation occurs, a "reverse" exchange (buying before selling) may be necessary. Exchangers should be aware that reverse exchanges are considered a more aggressive exchange variation because no clear IRS guidelines exist.
DO NOT dissolve partnerships or change the manner of holding title during the exchange. A change in the Exchanger's legal relationship with the property may jeopardize the exchange.
Request Information
Information Provided by NNN Properties.
www.1031nnn.com
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Securities offered through GunnAllen Financial, Inc. Member FINRA/SIPC. GunnAllen Financial, Inc. is an FINRA registered securities broker-dealer and SEC Registered Investment Advisor registered in all 50 states. This web site is published in the United States for residents of the United States . GunnAllen Financial, Inc. is a member of the Securities Investor Protection Corporation (SIPC.)GunnAllen Financial's advisors may only conduct business with residents of the States and/or jurisdictions for which they are properly registered. Therefore, a response to a request for information may be delayed. Investors outside the United States are subject to securities and tax regulations within their applicable jurisdictions that are not addressed on this site. Products and services mentioned in this web site may not be available in all states. To request information, contact your GunnAllen Financial, Inc. investment professional. GunnAllen Financial, Inc. is not soliciting business in any state or international jurisdictions where it is not registered. No statement within the website should be construed as a recommendation to buy or sell a security or to provide investment advice.
Investments in real estate involve a substantial degree of risk and are not suitable for all investors. A prospectus or contract should be read thoroughly and understood before investing. Any tax advantages should be discussed with a qualified tax professional prior to investment.
Investments in Real Estate involve substantial risks including possible lack
of liquidity, general downturns in the real estate market as well as
downturns in specific geographic areas, vacancies, and devaluation based
upon adverse economic and regulatory changes. A prospectus or contract
should be read thoroughly and understood before investing. Any tax
advantages should be discussed with a qualified tax professional.Whether it is 1031 TIC Exchanges , TIC 1031 Brokers , TIC Replacement Properties , tenants in common or 1031 Exchanges , we speak your language.
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