What is Tenants-in-Common (TIC)?
A TIC is a form of real estate asset ownership in which two or more persons have an undivided, fractional interest in the asset, where ownership shares are not required to be equal, and where ownership interests can be inherited. Each co-owner receives an individual deed at closing for his or her undivided percentage interest in the entire property. Through TIC ownership, the average person is able to enjoy ownership in an institutional-type property with a minimum investment. You can choose to deduct sales tax you paid as an itemized deduction. If you are eligible to itemize, you can deduct the higher of your state and local income taxes, or sales tax you paid. If your business has a 401(k) plan, you can defer $14,000 in 2005. If you are age 50 or more, you can defer an additional $4,000. Qualified leasehold improvements that are placed in service prior to January 1, 2006 are depreciable on a straight-line schedule over 15 years, not the previous 39 year requirement.
