http://allstates1031.com/blog/index.php/2010/02/20/what-do-i-do-if-my-tic-is-in-trouble/ 1031 Chat by All States 1031 Exchange Facillitators Mon, 21 May 2012 21:55:32 +0000 http://wordpress.org/?v=2.7.1 hourly 1 http://allstates1031.com/blog/index.php/2010/02/20/what-do-i-do-if-my-tic-is-in-trouble/comment-page-1/#comment-60 jeff Sun, 21 Feb 2010 17:08:22 +0000 http://allstates1031.com/blog/?p=342#comment-60 What happens if the bank forecloses, or a deed in lieu, and the entity that owns the tic is insolvent? Would taxes still be owed? What happens if the bank forecloses, or a deed in lieu, and the entity that owns the tic is insolvent? Would taxes still be owed?

]]> http://allstates1031.com/blog/index.php/2010/02/20/what-do-i-do-if-my-tic-is-in-trouble/comment-page-1/#comment-59 Moore McLaughlin Sun, 21 Feb 2010 12:43:47 +0000 http://allstates1031.com/blog/?p=342#comment-59 You have identified the important distinction between recourse and non-recourse debt. You have a valid point if the debt is recourse debt. However, with the TIC investments, the debt is almost always non-recourse debt. COD income cannot be generated from non-recourse debt. The insolvency exception applies to COD income, none of which arises when the debt is non-recourse. You have identified the important distinction between recourse and non-recourse debt. You have a valid point if the debt is recourse debt. However, with the TIC investments, the debt is almost always non-recourse debt. COD income cannot be generated from non-recourse debt. The insolvency exception applies to COD income, none of which arises when the debt is non-recourse.

]]> http://allstates1031.com/blog/index.php/2010/02/20/what-do-i-do-if-my-tic-is-in-trouble/comment-page-1/#comment-58 jeff Sun, 21 Feb 2010 02:20:08 +0000 http://allstates1031.com/blog/?p=342#comment-58 if the company that receives the cod income is insolvent, then wouldn't there be no tax due? if the company that receives the cod income is insolvent, then wouldn’t there be no tax due?

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