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A Delaware Statutory Trust is an Option to Invest in Alternative Structures while still Deferring Gains

Real estate investors looking to defer capital gains taxes have an alternative option through a Delaware Statutory Trust (DST). While traditional 1031 exchanges are common, a DST allows investors to defer gains while bypassing property management responsibilities. As a passive investment managed by professional real estate firms, a DST can provide steady performance insights and eliminate personal debt liability through non-recourse debt options.


 

For more details on how DSTs work in a 1031 exchange, read the full article by Michael Packman in the New York Real Estate Journal.



New York Real Estate Journal
 

Key Benefits of a DST for 1031 Exchanges:

  • Hands-Off Property Management: Ideal for investors ready to reduce management burdens.

  • Tax-Deferred Partial Exchange: Invest partial proceeds in a DST to defer gains on sales.

  • Flexible Property Classes: Includes multifamily, office, retail, and industrial properties.


With substantial growth in DST investments, this structure appeals to those seeking diversified and hands-off real estate options. However, it’s essential to consult experienced advisors to ensure a DST aligns with your investment goals.


02/15/2021

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