Delaware Statutory Trusts

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?

What Are the Seven Deadly Sins of a Delaware Statutory Trust (DST)?

A Delaware Statutory Trust (DST) is a versatile tool for real estate investment property owners to facilitate 1031 exchanges, spread their risk, and potentially receive passive income from real estate investments. However, like any other form of investment, DSTs have pitfalls that must be understood and managed to achieve the desired results.

How Does a Delaware Statutory Trust (DST) Provide Asset Protection?

DST Ownership Structure: Who Controls a Delaware Statutory Trust?

Delaware Statutory Trusts (or DSTs) have become popular, offering advantages like capital gains tax deferral and passive income. As such, more and more investors now want to learn about this investment vehicle’s relatively complex ownership structure.

Delaware Statutory Trust (DST) 1031 Exchange: What You Need To Know

Commercial real estate investment has become one of the latest asset classes to help investors further diversify their portfolios along with historical choices such as bonds and equities. There is a potential for good returns, and you can diversify your portfolio for added security. The main drawback of commercial real estate is that it can be hard to penetrate. Investing in these properties takes a lot of initial capital. There’s also the matter of management, an intensive process that eats up effort, time, and funding.

Deferred Sales Trust: What It Is and How It Works

In our published articles, we talk extensively about Delaware Statutory Trusts. However, there is another “DST” that investors can leverage in case they do not qualify for a 1031 Exchange but still want to enjoy tax deferrals — a deferred sales trust. In this scenario, you “sell” your property to a trust, and the trust will pay you in “installments” over an agreed-upon timeframe. This legal contract has a few major differences from exchanges, so investors must have an in-depth understanding of how it works before they commit.

Delaware Statutory Trust (DST): Advantages & Disadvantages To Consider

For those who are interested in leveraging the 1031 exchange, joining a Delaware Statutory Trust (DST) is one popular approach you can take. This investment vehicle offers various advantages that make it easier for you to enjoy the tax exemptions of a 1031 exchange. Of course, disadvantages of DSTs exist. Understanding these risks and challenges is critical to help you make more informed investment decisions.

Disadvantages of Delaware Statutory Trust (DST) 1031 Exchange Replacement Properties

Delaware Statutory Trusts (DSTs) are an increasingly popular investment vehicle for those seeking attractive passive investment opportunities. A sponsor creates a DST using Delaware’s unique trust regulations to design a pre-packaged offering for investors. DSTs often focus on specific real estate sectors and include assets that a typical investor could not purchase individually.

What Is The Rate Of Return Of A Delaware Statutory Trust?

Unlike a direct real estate investment, investing in a DST is less complicated. There isn’t any rehab that investors must spend money on. There are no closing costs. The cost-basis is easy to figure out. All of that helps simplify the Delaware Statutory Trust rate of return (RoR) calculation. In this article, we’ll dig into what you need to know about calculating the RoR on a DST.