TIC Investments

Tenants in Common (TIC) is a fractional real estate ownership structure that gives each investor a deeded interest in the property — and qualifies for 1031 exchange treatment.

What is a TIC?

A Tenants in Common structure allows multiple investors — up to 35 under IRS guidelines — to hold individual, undivided ownership interests in a single piece of real estate. Unlike an LLC, each co-tenant holds a separately deeded interest, which is what makes the structure eligible for 1031 like-kind exchange treatment.

TICs are often used by investors selling appreciated property who want to defer capital gains tax while transitioning into passive, professionally managed real estate without the burden of finding a sole replacement asset within the 45-day identification window.

Why investors choose TIC

Deeded Ownership

Each investor holds an individual, undivided fractional interest in the property deed.

1031 Exchange Eligible

TIC interests qualify as 'like-kind' property under IRC Section 1031 for tax-deferred exchanges.

Up to 35 Investors

IRS guidelines (Rev. Proc. 2002-22) allow up to 35 co-tenants in a single TIC structure.

Institutional Quality

Access Class A office, multifamily, retail, and industrial properties typically reserved for large investors.

Pro-Rata Income

Receive your share of rental income, expenses, and depreciation directly — no entity-level tax.

Independent Vote

Major decisions — refinancing, sale, lease changes — typically require unanimous co-tenant consent.

TIC vs. DST at a glance

Feature	TIC	DST
Max investors	35	~499
Ownership type	Deeded interest	Beneficial interest in trust
1031 eligible	Yes	Yes
Decision making	Unanimous co-tenant vote	Trustee-managed, fully passive
Minimum investment	Typically higher	Typically lower (~$100K)

Ready to explore your real estate options?

Every strategy has trade-offs in tax treatment, liquidity, and control. Schedule a complimentary call with Toni to map the right fit for your goals.

Schedule a Free Consultation