Tenancy in common is an investment situation where two or more people have ownership interests in a property. This is similar to a partnership, however a TIC enables each owner to individual report their stake in the property. This means that instead of filing a partnership tax return, Form 1065, you can report your share of the property on Schedule E.
In a TIC structure, the owners have the right to assign their individual stakes as they see fit. This means they can sell their stake without other TIC member’s approval.
You may see TIC structures utilized in syndications where the entity owns 95% of the property and the remaining 5% is owned by individual investors. This structure is used so that investors can utilize a 1031 exchange into and out of the syndication.
Have questions?
![Walkthrough: How a Short-Term Rental Investment Can Result in BIG Tax Savings [Tax Smart Daily 060]](https://www.therealestatecpa.com/wp-content/uploads/2023/12/img-blog-49.webp)
![How to Claim Tax Losses Even When You Put $0 Into a Deal [Tax Smart Daily 059]](https://www.therealestatecpa.com/wp-content/uploads/2023/12/ts-daily-59.webp)