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Tax Savings & Investment Leverage
1031 Exchange: You could be obligated to pay from 15% to 30% tax on the net proceeds from the sale of commercial or investment property, including residential property that has appreciated in value since you purchased it. That could significantly reduce the funds available to reinvest in another property. A 1031 exchange allows you to defer the tax and thereby increase your purchasing power to acquire other or more valuable property. But there are specific guidelines to follow in this real estate transaction … especially making sure that you never take possession of the proceeds from your sale.
The process involves identifying replacement properties you are considering purchasing, and doing it within a specific and limited period of time. And it requires completing the purchase of the replacement properties within a specific and limited period of time. That calls for REALTORS® (that’s US) who know how to handle such transactions; how to identify the replacement properties; what organizations to use as the required “Middle Man” (Qualified Intermediary who holds the sale proceeds until a replacement property is purchased); and how to negotiate with the seller(s) of the prospective replacement property (ies) which you have identified to replace the property you sold, so that the transaction is fully completed within the specific and limited period of time. Click here (www.summit1031.com) for more detailed information, and contact us directly to help you through this process. It will pay off for you!
Tenants-In-Common: A TIC is a form of ownership that permits multiple buyers to own an undivided interest in a single property. Each investor receives a deed for their portion of the property and enjoys the same rights as if they were the sole owner of the entire property. TIC properties permit you to leverage your investment by purchasing ownership in commercial properties that you otherwise might not be able to afford, and which generate lease payments greater than what you would otherwise realize. TIC properties can provide immediate returns in the form of lease payments. And they permit you to sell your ownership at any time, to whomever you wish, and to do so without the approval, consent, or agreement of any of the other TIC owners.
If this sounds like a Real Estate Investment Trust (REIT), it isn’t! It differs primarily because your ownership is independent of any other owners. There are no general or limited partners involved. And because of a recent IRS determination, a TIC property, with all of its ownership advantages, also can be eligible as a 1031 Exchange property. Sounds appealing? It is. Want more information? Call us at 801.450.6704, and Click here (www.RockwellTIC.com) for more details.
The tenants-in-common industry is a highly regulated industry. As a securitized investment, it is overseen by the SEC (Securities & Exchange Commission) and the NASD (National Association of Securities Dealers) and accordingly is subject to their rules and regulations. Additionally, SEC Rule 205(c) mandates that information pertaining to tenants-in-common investments should not be made available to the general public unless such persons have been pre-qualified with regard to suitability and accreditation. Accordingly, the NASD has advised that it would be prudent to password protect tenant-in-common websites so that only investors who have been pre-qualified may access tenants-in-common information and properties. |
