1031 Exchange Investing and Tenants in Common properties

Our Most FAQs on Tenants in Common investing

Grant Conness (1031 Alternatives Group) — Sun, 14 Sep 2008 14:55:45 -0500

Listen to our New Podcast on 5 common questions pertaining to 1031 Tenant In Common (TIC) investments

5 common questions pertaining to 1031 Tenant In Common (TIC) investments:

I heard partnerships do not qualify as “like kind” property for a 1031 exchange. How does the purchase of a Tenant In Common (TIC) interest differ from a partnership?

The most profound reason is a 2002 IRS Revenue Procedure ruling. This ruling, Revenue Procedure 2002 dash 22, essentially set forth the guidelines whereby a TIC would be recognized as real estate, not as partnership. Hence, it could be used in a 1031 tax-deferred exchange. There was a small group of companies, mostly in southern California, offering TIC properties in the 1990’s as passive investment options for their clients. However, since the landmark ruling in 2002, TIC offerings have grown into a multi-billion dollar industry.

To read more please visit our 1031 Exchange Blog or subscribe to our 1031 Exchange Podcast channel on UTube.

If you have questions on Tenants in Common investing or 1031 Exchanges please feel free to leave us a comment.

1031 Exchange Video - 5 Common 1031 Exchange Questions

Grant Conness (1031 Alternatives Group) — Sun, 20 Jul 2008 12:08:29 -0500

Watch out new video on 5 common 1031 Exchange Questions. If you have your own 1031 Exchange questions then give us a call at 866-4015-1031.

Subscribe to our 1031 Exchange podcast series on iTunes

5 common questions pertaining to 1031 exchange

Grant Conness (1031 Alternatives Group) — Wed, 16 Jul 2008 10:57:00 -0500

What are the benefits of exchanging vs. selling outright?

A Section 1031 exchange enables you to postpone taxes from the sale of qualifying properties. By deferring the tax, you have more money available to invest in another property. You can acquire and dispose of properties to reallocate your investment portfolio without paying tax on the current gains.

Is “tax deferred” the same as “tax free?”

No. With a 1031 exchange, you defer paying the capital gains taxes on your relinquished property but the tax basis is carried over to your replacement property. When you sell the replacement property without doing an exchange, you will pay the tax at that time.

What do you mean when you refer to “basis?”

Basis is the initial investment in the original property, increased by capital expenditures and decreased by allowable depreciation or cost recovery. It is used to calculate the amount of capital gain you will realize. For example, if you originally purchased a property for $250k and $200k of the $250k was dedicated to improvements and real estate (depreciable) and the other $50k was land (non-depreciable), you could depreciate the $200k over 27.5 years. Depreciating the $200k over 5 years would provide you with an “adjusted basis” of $213,636 in the property.

Can I completely avoid the tax in a 1031 exchange?

Under current law, the “stepped up” basis resets the basis to the market value at the time of death of the original owner. However, any gain above the fair market value of the property at the time of death of the original owner is still taxable. If sold at a gain, the heirs would still be subject to taxes using the stepped up basis.

In a partnership, if we sell our property, can we go our separate ways in an exchange?

No, you must first formally dissolve the partnership and deed out the interest as tenants-in-common before you do an exchange. Then you can sell/exchange your interests separately. However, if the partnership wants to stay together to buy another property, that qualifies for an exchange. If this is your scenario, advance planning is necessary. You should always consult your attorney or tax advisor regarding your personal situation.

If you need more information about a 1031 Exchange give us a call at 866-405-1031 or visit our website www.1031alternatives.net.

This material is neither an offer to sell nor the solicitation to purchase any security. Purchases may only be made upon thorough review of risks in merits located with in the Private Placement Memorandum or Prospectus. Pictures located on this presentation are not current offering and are used for illustration purposes only. This presentation is for illustration purposes only and is not intended to replace any competent tax, legal or financial planning advice. Securities offered through Pacific West Securities, Inc. – Broker Dealer – Member FINRA/SIPC.

Market Served: CA, CO, FL, GA, IL, LA, MD, NC, NJ, NM, NY, OH, SC, TX. VA

Tenants in Common Investing Basics

Grant Conness (1031 Alternatives Group) — Fri, 04 Jul 2008 13:59:11 -0500

Have you wanted to know more about the basics of investing in a Tenants in Common property? In our new podcast we go over some of the important benefits and risks of 1031 Exchange Tenants in Common Investing

Tenants in Common Basics - Podcast

Keep current on 1031 Exhanges with our 1031 Exchange Podcast series on iTune

Do you have questions on the 1031 Exchange process or 1031 Exchanges? Email us at info@1031alternatives.net and your question could be answered in our next podcast series!

What Real Estate Professionals need to know about Tenant in Common Securitized Transactions

Grant Conness (1031 Alternatives Group) — Tue, 17 Jun 2008 07:03:07 -0500

Are a real estate professionals with clients interested in a 1031 Exchange? Watch our new video on important information on the NAR recent exemption requests to the SEC. Will you finally be able to recieve a commison on Tenant in Common Transactions?

For more information and to keep current on this important issue visit us 1031 Exchange investing

Market Served: CA, CO, FL, GA, IL, LA, MD, NC, NJ, NM, NY, OH, SC, TX. VA

1031 Exchange Explained

Grant Conness (1031 Alternatives Group) — Wed, 11 Jun 2008 21:58:23 -0500

Are you interested in learning about the 1031 Exchange process? Our new podcast series will educate you on the 1031 Exchange process. Listen to our new edition on 1031 Exchange Explained.

1031 Explained - 1031 Exchange Podcast Subscribe to our iTunes 1031 Exchange Podcast Download 1031 Exchange Explained in .wmv