TIC Advantages
Seller discretion to pay tax liability on sale; Seller by reinvesting his/her equity has flexible control over the amount of taxes to be paid. The amount of equity reinvested directly controls the amount of taxes from the sale.
Seller flexibility over the desired amount of reinvestment; Seller can more efficiently reinvest up to 100% of equity and thereby pay zero taxes.
Seller discretion to invest into multiple diversified real estate assets; Seller has multiple reinvestment options as to both real estate investment type and geographical location. Seller has flexibility in reinvesting into several different diversified transactions. Seller can implement business succession and estate plan objectives with reinvestments.
Seller has no management hassles; Seller reinvestments provide for professional asset and professional property management services.
Seller receives non-recourse debt financing on reinvestment; Seller is released from personal liability on the financing of reinvestment real estate assets.
Seller reinvests in superior institutional quality real estate assets; Seller(s) investments are upgraded into soundly structured institutional real estate which provide conservative returns, solid appreciation potential and reduced economic risks.
Seller can implement subsequent 1031 exchanges; Seller can indefinitely delay taxation and return to sole ownership.
Seller can implement tax saving estate objectives; Seller enhances estate plan tax saving objectives with TIC investments. Eliminate capital gain and recapture income taxation and one' estate with FMV step-up in basis. Seller qualifies for a 25-50% estate valuation discount on TIC investments.
Saved me $3.6 Million in taxes