What is a Tenancy-in-Common (TIC) Structure?
A tenancy-in-common is a form of real estate ownership, where two or more individuals each own a fractional share of a whole piece of property. In 2002, the IRS released Revenue Procedure 2002-22, which significantly increased the use and attractiveness of the TIC structure. Revenue Procedure 2002-22 sets forth a series of guidelines which, if complied with by a sponsor or a TIC investment program, would allow the sponsor to seek and obtain a favorable tax ruling that the TIC interests created by the sponsor would be deemed “like kind” property for purposes of section 1031 and, therefore, qualify as replacement property necessary to accomplish an exchange.
