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A 1031 exchange permits 1031 property property investors to sell a rental property and defer tax payments by reinvesting the proceeds into a like-kind 1031 property or rental properties. A tenants in common is a form of ownership that permits participants to enjoy the rewards of rental property ownership without participating in the ongoing management of a rental property. A TIC exchange yields an inherent interest in rental property and offers several benefits as a qualified 1031 exchange. The theory behind internal revenue code is that when a property investor has reinvested the sale proceeds into another rental property, the economic gain has not been realized in a way that generates funds to pay any tax. Therefore, it would be unfair to force the taxpayer to pay tax on a paper gain. TIC exchanges offer this and many more benefits to investing.

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