Whether DST Is Suitable For 1031 Exchange

Why did you choose Delaware Statutory Trust as your 1031 Exchange?

Delaware Court Trust, or DST for short, is an independent legal entity established around Delaware Court Law. DST Investments is the alternative property of real estate investors, who hope to use 1031 exchange rate tax transfer strategy to transfer capital gains tax. This is also a good choice for investors who want to diversify their real estate portfolio. DST real estate property right structure supports investors with less capital. This allows them, as individual owners within the trust, to own part of the interests in large institutional commercial real estate jointly and exclusively managed by other investors. All owners are entitled to tax incentives, a certain percentage of cash flow income and the proliferation of all properties(if any).

advantage

Create a valuable legacy for the heirs

DST is very useful if you want to create a carefree portfolio and provide benefits for successors for a long time to come. As with other 1031 Exchange qualified investments, your successor will increase the cost base when acquiring your DST assets, and will not inherit the previous spread capital gains tax.

Diversified product portfolio

DST allows you to choose the amount of investment, so you can freely invest in multiple DST properties. You can also diversify your real estate product portfolio.

Receive regular deployment

Delaware’s statutory trust has the right to retain cash reserves to avoid the need for property maintenance or unpredictable costs. However, all proceeds and income exceeding the amount of the deposit shall be regularly distributed to the beneficiaries within the specified period.

Complete 1031 switch backup plan

This is a good preparatory plan for 1031 exchange investors in Delaware Statutory Trust(“DST”). DST guarantees that 100% of the Exchange Fund will invest in real estate replacement, and investors will defer capital gains tax.

Within the specified 45 day identification period, the real estate in the DST shall be identified as the third potential alternative real estate. Whatever the reason, if the first two properties cannot be obtained, at least no tax will be paid in the end. DST meets the 1031 exchange requirements and can successfully complete the exchange. DST is ideal for booting.

Keynote

The DST ownership option extends the same advantages that investors welcome as single large investment real estate owners, but does not include management responsibilities. Each DST real estate asset is managed by a real estate manager and a professional investment real estate asset manager. If a suitable replacement property cannot be found within the specified 45 day identification period, DST will become a lifesaving straw. If you are an investor and want to get the maximum benefit from real estate, DST is the best.