DST tax filings are a little different from other investments. The forms you receive from the DST sponsor aren’t standardized across DSTs. Depending on your entity type, there are different associated tax filing deadlines as well. We’ll cover what this means for you as a DST investor.
DST Tax Filing Deadlines
Delaware Statutory Trust (DST) investors have until April 15 to file their taxes each year, regardless of whether they invested individually or through a pass-through entity. However, investors who reinvest their DST distributions may have to file an additional tax return by October 15.
Estates, trusts, and C-Corps also fall under the April 15 deadline. Pass-through entities are LLCs and are also filed by April 15.
Investors entering the DST as an S-Corp or partnership must file by March 15.
State Filings
Many investments send a K-1 or 1099 to their investors. However, DSTs send neither. Instead, you’ll get a year-end statement (sometimes called a substitute 1099). Be sure to check with the DST sponsor, as document delivery times can vary.
DST year-end statements are not standardized. They can look different from one DST to the next, but each should contain all the necessary information to complete your tax return for the DST.
The good news is that if you have to file in multiple states, DST filings are simpler than those for direct property.
Tax Filing Documents
Many investments send a K-1 or 1099 to their investors. However, DSTs send neither. Instead, you’ll get a year-end statement (sometimes called a substitute 1099). Be sure to check with the DST sponsor, as document delivery times can vary.
DST year-end statements are not standardized. They can look different from one DST to the next, but each should contain all the necessary information to complete your tax return for the DST.
The year-end statement is basically an income statement. You’ll find the pro rata income and expenses for your invested interest.
Filing tax returns across multiple states can be an involved process. Also, if you haven’t filed tax returns for a DST, there may be some areas that you are unfamiliar with. For those reasons, it’s best to work with a tax specialist.
This material is for general information and educational purposes only. Information is based on data gathered from what we believe are reliable sources. It is not guaranteed as to accuracy, does not purport to be complete and is not intended to be used as a primary basis for investment decisions. It should also not be construed as advice meeting the particular investment needs of any investor.
Realized does not provide tax or legal advice. This material is not a substitute for seeking the advice of a qualified professional for your individual situation.
No public market currently exists, and one may never exist. DST programs are speculative and suitable only for Accredited Investors who do not anticipate a need for liquidity or can afford to lose their entire investment.
