Delaware Statutory Trusts (DST)

Understanding Different Types of Delaware Statutory Trusts (DSTs): Growth ...

Understanding Different Types of Delaware Statutory Trusts (DSTs): Growth DSTs

A Delaware Statutory Trust (DST) is a 1031 exchange-eligible investment structure that gives investors partial ownership of commercial real estate properties that are managed by a professional real estate Sponsor. The DST market has ...

Delaware Statutory Trusts (DST)
Jun 22, 2022

[Podcast Recap] Potential Tax Benefits of 1031 Exchanges and DSTs for ...

Realized was recently featured on the Multi-family Investor Podcast while attending the ADISA Spring Conference. In this conversation, we discussed the potential benefits that 1031 Exchanges and Delaware Statutory Trusts (DSTs) may ...

Delaware Statutory Trusts (DST)
Jun 7, 2022

Do Investors Own the Property in a Delaware Statutory Trust?

Do Investors Own the Property in a Delaware Statutory Trust?

Investment in a Delaware Statutory Trust (DST) is an anomaly since the IRS recognizes it as direct property ownership for tax purposes. Yet, each investor owns a fractional share of the properties acquired by the trust. Each investor ...

Mar 20, 2022

Is a Delaware Statutory Trust (DST) a Pass-Through Entity?

Is a Delaware Statutory Trust (DST) a Pass-Through Entity?

A DST is an investment option that can offer numerous potential advantages for investors. For owners of commercial real estate, reasons for investing may include the pursuit of profits, stable income, and tax advantages. However, the ...

Mar 18, 2022

Can You Depreciate DST Interest?

Can You Depreciate DST Interest?

Investing in real estate typically involves not just income and expenses but also navigating the tax implications on the value of the investment. Therefore, an investor may choose a Delaware Statutory Trust (DST) to pursue potential gains and the passive nature of the ownership and income, plus the tax advantages.

Mar 9, 2022

How Are Delaware Statutory Trusts Regulated?

How Are Delaware Statutory Trusts Regulated?

A Delaware Statutory Trust, or DST, is a real estate investment option that provides investors with a route to fractional commercial property ownership. A DST is a corporation that uses Delaware trust laws to establish a trust. Each shareholder owns a beneficial interest in the trust, holding the properties the trust buys. The IRS states that investors (referred to as trust beneficiaries) are each direct owners of all the trust's assets. As a result, they are entitled to the tax benefits of owning real estate, including the ability to use a 1031 exchange to enter or leave the DST.

Feb 23, 2022

Is a Delaware Statutory Trust Irrevocable?

Is a Delaware Statutory Trust Irrevocable?

A Delaware Statutory Trust (DST) is an investment vehicle that investors can use to access fractional ownership of commercial real estate assets. DSTs have tax advantages in many situations and are typically eligible for both entry and exit using a 1031 exchange, which sets them apart from many other investment options. DSTs may own various properties, including multi-family housing, office buildings, retail centers, industrial property, medical offices, self-storage, and others.

Jan 21, 2022

How do Delaware Statutory Trust Sponsors Make Money?

How do Delaware Statutory Trust Sponsors Make Money?

A Delaware Statutory Trust, or DST,  is an investment option that allows investors to purchase fractional interests in a commercial property portfolio and seek to manage tax liability. Although none of the investors or the property needs to be in Delaware, a DST needs to have a Delaware resident as one of the trustees; however, the designated Delaware resident does not need to be an active decision-maker.

Jan 4, 2022

What is a Delaware Grantor Trust?

What is a Delaware Grantor Trust?

The state of Delaware offers potential income tax advantages and has trust-friendly laws for individuals. These benefits aren’t limited to the residents of the state. Non-residents can use the state’s laws to their advantage by creating a trust fund in Delaware. One type of trust to consider opening is a Delaware grantor trust.

Jan 3, 2022

Why Consider a Delaware Statutory Trust?

Why Consider a Delaware Statutory Trust?

Real estate investors may be looking for ways to keep more money in their pockets at the end of the tax year. Obviously, there are some cases where taxes cannot be avoided, but there can be a legal way to write off some of your earnings or defer some of the taxes you owe until a later date. Obviously, it’s vital that any tax breaks you find are applied within the framework of the law, as failure to comply with state and federal tax laws can result in hefty fines and more serious penalties. However, knowing how to use tools, such as a Delaware Statutory Trust, can help you legally keep your money in your pocket.

Dec 26, 2021

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