Bradley T. Borden (Brooklyn; Google Scholar), Fixed-Price Put Options Undermine Section 1031 Treatment of Tenant-in-Common Interests, 175 Tax Notes Fed. 1989 (June 27, 2022):
A fixed-price put option held by a co-owner on an undivided interest in real property causes the undivided interest to lose its TIC status for federal income tax purposes. That option, if offset by a call option, may also signal an intent to sell the underlying property, resulting in the interest being held primarily for sale or resulting in tax ownership residing with the holder of the call option.
Consequently, a purported TIC interest that is subject to a fixed-price put option most likely cannot qualify as valid section 1031 exchange property.
https://taxprof.typepad.com/taxprof_blog/2022/07/borden-fixed-price-put-options-undermine-section-1031-treatment-of-tenant-in-common-interests.html
