Page 4 31 - 40 of 185
How to Evaluate a DST Broker
Joining a Delaware Statutory Trust (DST) can be a tax-deferred strategy for real estate investors using a 1031 exchange. By buying fractional interests using proceeds from a 1031 exchange, you may defer capital gains taxes and potential for passive income from institutional-grade assets. Since you don’t have direct property ownership, you can also enjoy a more hands-off involvement in the DST.
Considerations With Delaware Statutory Trusts
Delaware Statutory Trusts (DSTs) are a type of legal structure that allows investors to own a fractional interest in a legal entity that holds income-generating real estate. For those who are undergoing a 1031 exchange, investing your proceeds into a DST is a qualified strategy that lets you defer capital gains taxes.
Why Was The Delaware Statutory Trust (DST) Formed?
Delaware Statutory Trusts or DSTs are an attractive investment strategy for many investors, offering benefits like passive income, fractional ownership, hands-off involvement, and tax deferral through 1031 Exchanges. Why did it become popular in the first place? Why was the Delaware Statutory Trust formed?
Delaware Statutory Trust (DST) Financing for 1031 Exchanges
Financing may not seem necessary in a 1031 Exchange since you’re theoretically reinvesting all the proceeds of a property sale into a Delaware Statutory Trust (DST). However, various scenarios in real life can create the need for financing. This article provides an overview of these options to help you understand the more common DST financing approaches. Let’s dive in.
Can Anyone Invest in a Delaware Statutory Trust?
A Delaware Statutory Trust (DST) can be an attractive investment vehicle for owning investment real estate without management headaches. Investors interested in a 1031 exchange could find that a DST might be a good replacement property, as it’s easier to equate the value of fractional shares to that of the relinquished property.
Using a Delaware Statutory Trust with a 1031 Exchange
Using a 1031 exchange to exit your current investment real estate ownership can help defer capital gains taxes and depreciation recapture. Thanks to the IRS Revenue Ruling 2004-86, you can use fractional shares offered through a Delaware Statutory Trust (DST) as part of your exchange strategy.
Tax Implications of a Delaware Statutory Trust
Investment in a Delaware Statutory Trust (DST) could offer a few benefits:
Evaluating 1031 DST Listings and Properties
Deferring capital gains taxes by acquiring Delaware Statutory Trust (DST) shares through a 1031 exchange may provide tax-deferral benefits, though investment outcomes vary based on market conditions and individual circumstances. A DST allows you to invest the proceeds from your relinquished property into the trust. Your replacement property is ownership of fractional interests in the DST.
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.
Page 4 31 - 40 of 185
