The ICT management risk has nothing to do with the sounds that clocks make (then there would be an OCD management risk). TIC stands for “Tennant In Common” and is a term commonly used in 1031 investing, generally found in the real estate market. Confused yet? Okay, join the club. But make sure that anything to do with real estate will get the attention of the IRS.
Playing with the greats
ICT management risk is something that worries owners of incredibly large buildings or large properties who need a lot of work on them all the time. Therefore, its double width will not alert the IRS to potential ICT management risks. But if you own a huge skyscraper that has many tenants (or a shopping center with many businesses that pay rent, for example), then you will have a lot of trouble collecting rents, keeping the property, and paying for your property. taxes.
Two or more people come together as partners to own a large real estate and come together for an ICT or 1031 investment in that real estate. Do you know how there are groups of dozens of people who can own the same racehorse? It’s that kind of thing, just for a valuable building or property rather than a racehorse.
Do not do it yourself
Although you could technically try to handle an ICT investment yourself, you can avoid many ICT management risks by hiring a broker to do so. They manage their TIC real estate investments like a stock or bond broker would. Real estate is as valuable as money. And property trading (like moving your ownership interest, like buying and selling stocks) can be a way to delay paying taxes.
One of the biggest risks of ICT management is that it is practically incomprehensible to the newcomer to investing, especially real estate investing. Since such large amounts of money are moved, the IRS wants a piece. You can easily lose track of how much you owe and when, and those are the most real risks of ICT management.
Questions to ask
If you’re still reading, maybe you’re ready to explore the 1029 ICT investment. To avoid some ICT management risks, select your broker carefully. Find out how long they have been in business and if you can easily contact them before depositing money. You can also check the SEC to see if they are licensed.