What is a DST?
Many have heard of 1031 real estate exchanges to defer taxes. A seller takes the proceeds from an investment property, and then uses those proceeds to purchase other investment property. It’s a great tool that has been around for decades, thanks to the IRS Code (IRC) 1031. This popular option is often used instead of a typical 1031 exchange…
BUT…
What if you don’t want another real estate property to manage? Perhaps you are tired of being a landlord, or tired of paying someone to manage your real estate investment?
The DST (Delaware Statutory Trust) Can Help
The DST takes the proceeds from your transaction, and puts it into passively managed properties. Examples can be multi-family housing, senior living facilities, office buildings, Triple Net (NNN) retail and more. Your money can go to work for you while shielding your gains (and your future gains) from taxes.
Potential Benefits
- Defer taxes on capital gains and depreciation
- No more managing the property – In-place professional management
- Improved tax advantaged income
- Ability to exchange into higher quality institutional property
- Improved appreciation
- Simplify your estate for your heirs
- No Bookkeeping
- High credit tenants
- Low minimum investment amounts – allowing for diversification
- Non-recourse financing
- No lender approval or pre-qualification