A Delaware Statutory Trust (“DST”) is a pass-through entity that may be used by investors in a 1031 Exchange for tax-deferred access to institutional-quality real estate. Unlike other 1031 Exchange options, a DST is a trust that owns 100 percent of the real estate and has up to 1,999 investors who invest the proceeds from the sale of commercial real estate through a 1031 Exchange.
Investors must meet these guidelines to achieve complete tax deferral through a 1031 Exchange.
A successful 1031 Exchange transaction must follow this time-sensitive process to completion.
If a replacement property is not found within the 45-day window, tax deferment may be in jeopardy. Closing on the replacement property must be the earlier of 180 calendar days from closing on the sale of the relinquished property or the tax filing due date for the year in which the relinquished property was sold, unless tax filing extension was obtained.
A DST is a commercial real estate investment vehicle which seeks to provide:
This is not intended to be tax advice. You should consult your tax professional. Tax treatment may vary from investor to investor.
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