What is the best t.i.c.to park a one million dollar sale with $700,000 equity and $300,000 debt?

The seller wishes to not pay taxes on his income from the t.i.c. is there a way to roll over the income from the t.i.c. back into the t.i.c., or is there another way to avoid taxes on t.i.c. income? He wishes to leave the money to his kids.
In Selling Property - Asked by Mar R. - Apr 11, 2010
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Answer(s)

Robert F.
Broker/Agent
Upland, CA

SCI is the best and they pay the commissions due...

Apr 12, 2010
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Karim A.
Broker/Agent
San Diego, CA

Yes, it is absolutely possible to execute a 1031 Tax Deferred Exchange from the sale of a TIC ownership. The key is how the ownership is titled in both the downleg and the upleg. A TIC ownership interest in real estate is considered real property where as an ownership interest in an LLC is considered personal property. In some cases, we have acquired property with an LLC as Tenants in Common with an individual to accomodate a client 1031 exchange. The benefit with exchanging into a TIC in a 1031 is the additional flexibility afforded by having other partners - this increases the chances of being able to cover exactly the amount of debt and equity from your downleg.
-Karim
(619) 813-5809

Apr 14, 2010
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