Instead, the reporting of the income and expenses related to the tenancy-in-common
property would be done directly on the owner's personal return, avoiding the need for additional tax preparation fees and, likely, fees various taxing authorities assess to business entities.
interests need not be equal--typically, they're in proportion to an owner's capital contribution--and there's no right of survivorship (unless the parties agree otherwise).
Real estate left directly to multiple family members automatically results in a tenancy-in-common
ownership, unless otherwise specified.
interest is considered like-kind property for purposes of a Sec.
(TIC) allows two or more persons to have an undivided, fractional interest in a property asset.
Even if the partnership or LLC held the real estate for business or investment purposes, the IRS might argue that individual owners who exchanged their tenancy-in-common
interests failed to meet the "held for" requirement because they held the property for sale.
Then, those who want a sale may sell and those who want to exchange may do an exchange with their tenancy-in-common
In another tax planning strategy, the former partners of a liquidated partnership hold their relinquished property tenancy-in-common
interests for an extended period before exchanging them for the replacement property.
The interest was acquired from The Gale Company and Principal Real Estate Investors, and is held as a tenancy-in-common
10, 2003, A sells a 50% tenancy-in-common
interest in his residence to his friend, C, for $305,000.