1031 exchange:
Multiple Property Exchanges and Fractional Interest 1031
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In a generous moment the IRS ruled that all real estate is "like kind" to all other real estate. Because this ruling builds large flexibility and creativity into the real estate investment, it is a real boon to real estate brokers. Expanding on this principle leads to the conclusion that any combination of multiple parcels of real estate can be exchanged for any other combination of multiple parcels of real estate.
For example a single investment property can be traded for two or more replacement properties. Or, several small rentals can be traded for a single larger investment.
Similarly, a one hundred percent ownership interest in one property can be traded for a smaller fractional interest ownership in a larger property. In fact, we are seeing several companies which are specializing in assembling 1031 exchange investors into pools of capital large enough to buy REIT grade office buildings, shopping centers, etc. Because all of the other rules of 1031 exchanging still apply, any exchange involving multiple properties or fractional interests must be made part of a comprehensive exchange plan.
Contact Milissa at www.Castle-NNN.com for more information about TIC Properties!
FAQs
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