Tax Implications of a Delaware Statutory Trust
Investment in a Delaware Statutory Trust (DST) could offer a few benefits:
Is a Delaware Statutory Trust (DST) a Disregarded Entity?
A disregarded entity is a legal structure for tax purposes under the Internal Revenue Code. It refers to a business entity that is legally separate from its owner(s) but treated as the same entity for federal income tax purposes. Common examples include single-member LLCs, which pass income or losses directly to the owner for tax reporting.
How to Invest in a Delaware Statutory Trust (DST) Through a Self-Directed IRA
Investing in real estate through a Delaware Statutory Trust (DST) offers significant advantages, especially for those seeking passive income and tax benefits. Combining this strategy with a Self-Directed Individual Retirement Account (IRA) allows investors to tap into real estate opportunities while maintaining the tax advantages of their retirement accounts. Here’s a step-by-step guide on how to achieve this, along with industry-specific terms and examples.
How to Conduct Due Diligence on a Delaware Statutory Trust (DST) Investment
Investing in a Delaware Statutory Trust (DST) offers certain advantages, especially for those seeking passive real estate opportunities or completing a 1031 exchange. However, as with any investment, conducting thorough due diligence is essential to assess its suitability, risks, and alignment with your financial goals. This guide outlines key steps for evaluating a DST investment, with a focus on industry-specific considerations.
What to Look for in a Delaware Statutory Trust (DST) Sponsor
Delaware Statutory Trusts (DSTs) offer an opportunity for passive real estate investment and 1031 exchange benefits. A significant factor in determining the success of your investment is the DST sponsoring or managing the DST, often called a “sponsor.” Choosing the right DST sponsor is a critical element to ensuring your investment aligns with your financial goals and risk tolerance. Here’s a guide to what you should consider when evaluating a DST company.
Can You 1031 Exchange Out Of A Delaware Statutory Trust (DST)?
A 1031 exchange is a powerful tax-deferral strategy for property investors, allowing them to reinvest proceeds from a property sale into “like-kind” properties to defer capital gains taxes. Delaware Statutory Trusts (DSTs) are increasingly popular for fractional ownership of high-value real estate. But what happens when you’re ready to exit a DST? Can you still use a 1031 exchange?
