Tenancy in Common: Federation of Exchange Accommodators
July 25, 2008
Many investors are now delving into the idea of going into a joint venture on real estate acquisitions to maximize profits with the minimum financial investments. The idea of tenancy in common (TIC) is to pool financial reserves together with your partners to purchase or acquire multiple properties to maximize profits and capital gains
The prospect of a risk-free business associated with TIC is quite appealing to different individuals who plan to go into the real estate business. The sharing of expenses and other contribution depending on the percentage share of each member of your party will allow you minimize any financial risk, while getting the best possible profits from your multiple investments.
But individuals who are into the tenancy in common method will be subjected to the 1031 Internal Revenue Code which is all about the capital gain tax in which each co-owner is subjected to. To solve this problem and to educate the different individuals in the business, the Federation of Exchange Accommodators was created.
What is Federation of Exchange Accommodators?
If you are into TIC, then it is only normal to get know about Federation of Exchange Accommodators (FEA). The company is the only national trade association created to represent professional businessmen or investors in like-kind exchanges under 1031 Internal Revenue Code (IRC).
The 1031 IRC allows different investors to defer taxes on various capital gains during the life of the real estate venture. A tax-deferred exchange is where an owner of a property of one or more relinquished real estate assets while deferring payment of federal income taxes and others during its transactions. The Federation of Exchange Accommodators will offer the services of professional accommodators for the job.
Accommodators are professionals under the Federation of Exchange Accommodators (FEA) which handles and facilitates 1031 exchange transactions between different companies or individuals. The main services provided by these individuals include coordination between exchangers and their advisors, preparation of documentation for different transactions like Relinquishment of Rights and Replacement Property, and so on.
The main function of the Federation of Exchange Accommodators (FEA) is targeted unto member companies registered under its wings. The federation provides resources, tools and legislative information to different business individuals to further the functionality of their business venture. It also aims to educate different consumers on using the 1031 IRC exchanges to defer the capital gain tax of their assorted properties.
Also, the Federation of Exchange Accommodators (FEA) are composed of professionals, linked with the main directive of the company geared towards its members such as lawyers, realtors, Certified Public Accountants (CPA), TIC brokers and lenders, escrow agents, and different financial institutions.
Kathryn R. Landry is a business writer for TIC Advisors, Inc . A company that can give you the most complete information on a 1031 exchange or TIC properties nationwide.
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