Do Delaware Statutory Trusts (DSTs) Appreciate in Value?
Delaware Statutory Trusts (DSTs) have become a popular strategy for passive real estate investing, helping accredited investors earn income without needing hands-on involvement. Those who utilize DSTs to end 1031 exchanges also enjoy tax deferrals and income preservation.
What Happens to a 1031 DST When the Owner Passes Away
Investing in a Delaware Statutory Trust has become appealing to many investors, especially for estate planning. After entering the trust through a 1031 Exchange, investors may enjoy tax-deferral benefits as well as the potential for passive income. You’re only required to pay capital gains taxes upon the sale of the DST. However, what happens to a 1031 DST when the owner passes away? Who inherits the fractional interests, and what are the tax implications? Realized 1031 has shared a guide to answer these questions.
Using a Delaware Statutory Trust (DST) for a 1031 in California
California is home to one of the most active and complex real estate markets in the country. The state is wealthy, with diverse markets that range from high-value properties to areas with promising growth potential. As you set your eyes on this location, however, it’s important to consider California’s unique characteristics and potential challenges. From high acquisition costs to the complex tax landscape, there are many variables investors must take into account.
How To Sell a Commercial Property Using a 1031 DST
A 1031 exchange allows investors to defer capital gains taxes by reinvesting sale proceeds into qualifying like-kind property. When paired with a Delaware Statutory Trust (DST), you can also enjoy passive income and diversification.
Can a Real Estate Broker Sell a Delaware Statutory Trust (DST)?
A Delaware Statutory Trust (DST) is an investment vehicle that may be used as replacement property in a 1031 exchange to defer capital gains taxes and potentially enjoy passive income. DSTs are typically structured as private placement securities and are available only to accredited investors.
Why Use a Delaware Statutory Trust (DST)?
Among the many alternative investment options available today, Delaware Statutory Trusts or DSTs have gained popularity because of benefits like minimal investor involvement and truly passive income. When combined with 1031 Exchanges, DSTs also provide tax-deferral benefits that help investors preserve their capital. Even so, there are still those who are unsure regarding DSTs and their benefits, especially when traditional 1031 Exchanges are also a viable option.
