Tenants In Common Explained

Tenants In Common Explained

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

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