could someone explain how a tic 1031 exchange works. I understand a regular 1031 exchange but not familiar with tic. how does it work what are requirements, etc. thanks
There is no difference in the mechanics of the exchange. When the replacement property is a TIC, you end up with a fractional ownership in an investment grade commercial property. You become a passive owner with no control over the property managment.
Dave is right. The transfer to a TIC is nothing special. The hard part is finding the right TIC. Once you put up the money, it’s tough to get the funds out. I recommend that people who do a 1031 exchange into a TIC do so for the income it generates and not count on the return of principal.