Under existing IRS guidance, taxpayers disposing of real estate may invest in real property owned through a tenancy in common (TIC) or a Delaware Statutory Trust (DST) as part of a qualifying tax-deferred like-kind exchange, so long as the TIC or DST arrangement meets certain requirements.
Is Your TIC Client a Candidate for Conversion to DST?
Tenancy in Common (TIC) arrangements are reaching maturity. This article explains the reasons converting to a DST may facilitate a refinancing, and discusses factors to keep in mind when considering the conversion of a TIC to a DST, most notably certain leasing limitations.
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