VOICES FROM THE INDUSTRY: Tenants-in-common pacts grow as investment vehicle
The real estate boom has created vast amounts of wealth for investors nationwide. As those investors seek to capitalize on that appreciation by selling properties, they will often reinvest in other real estate in order to delay the related tax bill through a likekind exchange. Internal Revenue Code Section 1031 allows taxpayers to defer income taxes on the sale of property if the proceeds are reinvested in similar or “like-kind” property. In the case of real estate, nearly all real…