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Daily Archives: April 20, 2016

The Rationale of Revenue Procedure 2002-22

Section 1031 of the Internal Revenue Service Code is one of the most generous, widely available provisions of the code, carving out an exception to the general rule that all gain or loss from the sale or disposition of property must be recognized. However, to ensure the veracity of a proposed 1031 exchange, investors often want to ensure their transaction falls within the “safe harbor” provisions of the code. One of the grey areas for quite some time was whether Tenancy in Common (TIC) ownership qualified for 1031 benefits. What caused this potential confusion? TICs are often likened to partnership interests, and partnership interests are specifically excluded from 1031 exchange […]