Most real estate investors are familiar with tax-deferred exchanges. This practice allows the seller of an investment property to defer the gain on a sale by purchasing property of equal or greater value if specific timelines are met.
One problem that arises is that the "replacement property" (the property an investor wants to exchange for the existing property) may be far more expensive than the investor can afford, and the net sale on the first property is not enough to acquire the second property.
While property prices have come down on many buildings and properties, the answer for many taxpayers has been the TIC transaction, or tenancy-in-common. This strategy allows investors who sell an investment property to buy ownership interests in another property (or properties) instead of buying the whole parcel.