What is a DST?
Overview:
A DST allows accredited investors to co-own real estate without active management.
Why a DST?
Diversification across asset classes and locations.
​Potential for stable income.
​Tax deferral through 1031 exchanges.
Who is it for?
Investors wanting passive income.
Those seeking to minimize tax burdens.
Individuals with limited short-term liquidity needs.
How DSTs Simplify Deferring Capital Gains Taxes
A Smarter Approach to Tax Deferral
When selling real estate, capital gains taxes can significantly impact your returns. However, utilizing a Delaware Statutory Trust (DST) as part of a 1031 exchange offers a streamlined way to defer these taxes, allowing you to retain more of your wealth for future investments. By leveraging this structure, investors can benefit from the tax advantages of real estate ownership while eliminating management responsibilities.
Investors Gain Control Over Tax Timing
One of the most attractive features of DSTs is the ability to defer capital gains taxes indefinitely. With a DST, you don’t pay taxes until your investment is sold, enabling you to strategically plan your financial future. This flexibility means you can focus on generating income from your investment while postponing tax liability to a time that aligns with your broader financial goals.
​For example:
An investor can sell a property and move into a DST, generating consistent passive income while deferring taxes until they decide to liquidate or reinvest their holdings.
Unparalleled Flexibility for Reinvestment
DSTs provide the unique opportunity to reinvest multiple times without triggering capital gains taxes. This reinvestment cycle empowers investors to transition between properties seamlessly, maximizing their portfolio’s growth potential over time. Whether you’re diversifying into new asset types or consolidating your holdings, DSTs ensure your wealth works harder for you.
Why this matters:
By reinvesting through a DST, investors avoid the "tax drag" that comes with traditional real estate transactions, compounding their returns instead of losing capital to taxes.