Though Delaware Statutory Trusts (DST) are not new, current tax laws have made them a preferred investment vehicle for passive 1031 exchange investors and direct (non-1031) investors alike. DSTs are derived from Delaware Statutory law as a separate legal entity, created as a trust, which qualifies under Section 1031 as a tax-deferred exchange.
In 2004, the IRS blessed DSTs with an official Revenue Ruling about how to structure a DST that will qualify as replacement property for 1031 Exchanges. The Revenue Ruling (Rev. Ruling 2004-86) permits the DST to own 100 percent of the fee-simple interest in the underlying real estate and may allow up to 100 investors — sometimes more — to participate as beneficial owners of the property. Potential benefits may include:
Properties shown are not owned by 1031 Capital Solutions, DFPG Investments, Inc., or any of their affiliates.
Properties shown are not available for investments in DSTs or other investment products offered by 1031 Capital Solutions.