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tim
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Post subject: TIC's  Posted: Fri Sep 29, 2006 4:50 am |
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| Junior Member |
Joined: Thu Sep 14, 2006 11:35 am
Posts: 38
Location: Las Vegas, Laguna Beach
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No, not the kind of ticks that Russ has...tenants in common. In case you dont know aboit TICs....basically, you own a piece of a larger block of real estate. I am told that you still have all the tax benefits. But, you dont have the hassles. Does anyone know anything about this??
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Tim and Julie Harris[FONT="Franklin Gothic Medium"][/FONT]
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TimRhode
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Post subject: tic investing Posted: Sat Sep 30, 2006 7:42 pm |
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Joined: Thu Sep 14, 2006 10:55 am
Posts: 9
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Hey Tim
I don't know if you remember me, I haven't been around much cause I got more into the wealth building and have been doing more investing then listing and selling. I was doing an exchange recently and really looked into the tics, you do get all the same ownership advantages as far as the irs. I didn't like owning w/ alot of other owners and I have no real choice on whats going on w/ my invesment. Tough to sell out of etc...
I ended up buying a nnn (no taxes,insurance or repairs) lease property that I own myself. Leased to Auto Zone an s & p rated bbb+ company. Thats what they call a credit tenant which along w/ a long term lease ( 20years w/4 5 yr extensions )qualifys for good long term financing. Most tics I saw had cap rates between 7-8 for quality properties. I just didn't like not owning it myself. I look forward to doing more of these. I like the thought of mailbox money. I'm sick of rental repairs and taking money out of my pocket.
To me this is a fun new world and I'd love to see other posts in this site.
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Admin
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Post subject: Posted: Sat Sep 30, 2006 10:49 pm |
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Joined: Fri Aug 25, 2006 5:24 am
Posts: 68
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Yes, Tim....of course I remember you...us Tims never forget each other:)
Are you 100% positive that IRC 469c7 still applies to TICs?
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TimRhode
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Post subject: Posted: Sun Oct 01, 2006 6:53 am |
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Joined: Thu Sep 14, 2006 10:55 am
Posts: 9
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Ok Tim what does this section refer to? I thought they were fine to exchange into, what isn't allowed?
Tim
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Admin
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Post subject: Posted: Sun Oct 01, 2006 8:34 am |
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Joined: Fri Aug 25, 2006 5:24 am
Posts: 68
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I am NOT an expert on this but this is how my CPA and other money people have explained it to me;
IRC 469c7
YOU have to manage the units. YOU have to be the active investor. You can hire out the grunt work but you can not use a management company.
Interest, depreciation, etc etc are all deductable. Interest is the biggie. If you use a management company you can deduct the interest. Then its just depreciation, upkeep, vacants etc.
Seems to me that a TIC is bascially a management company and thus would disallow the use of this IRS deduction.
Again, I reserve the right to be wrong about my understanding....
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