The Power Of 1031 Plus TIC

The Power Of 1031 Plus TIC

To summarize, the benefits of the combination of 1031 Exchange and TIC's include the following:

• Sell your property in a seller's market for maximum profit
• Defer capital gains tax
• Buy TIC's with pre-tax dollars           
• Avoid the stress of finding replacement property in a seller's market
• Invest in institutional quality property     
• Possibly diversify your portfolio with more than one TIC
• Receive steady rent payment checks partially tax sheltered by depreciation
• No management headaches
• Principal preservation and often more cash flow than before
• Share in any resale profit when property is resold
• Simplify your estate
• Possibly avoid capital gains tax permanently with stepped up basis

By the way, one of the greatest advantages of TIC's is that, once you are over the minimum for that offering, most sponsors allow you to purchase exactly the amount of TIC you need to complete your exchange, sometimes right down to the penny.  What other replacement property offers this?  Also, even if you buy a traditional replacement property or a Triple Net, TIC's can be used to "fill out" the exchange and absorb any left over funds that were not used for the traditional or Triple Net property, subject again to meeting the minimums of the particular TIC offering.