Delaware Statutory Trusts (DSTs) are typically utilized with 1031 Exchanges and provide real estate investment owners with a unique and flexible solution to defer capital gains tax while eliminating active management.
What is a Delaware Statutory Trust?
A Delaware Statutory Trust, commonly known as a DST, is a legally recognized trust that is set up for the purpose of business. Created under Delaware law it is well-suited for real estate co-ownership. And while it is not a requirement to execute a 1031 exchange to participate in DST investment, most of them are structured to comply with the requirements of IRS Revenue Ruling 2004-86. In addition, it must also (if using financing) meet certain lender requirements. While not all encompassing, the key features of the DST include:
What are the investor benefits to a DST?
What is a Master Tenant?
FINRA BROKERCHECK — PJ Lynch
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1031 Risk Disclosure:
No offer to buy or sell securities is being made. Such offers may only be made to qualified accredited investors via private placement memorandum. Risks detailed in a private placement memorandum should be carefully reviewed, understood and considered before making such an investment. Prospective strategies and products used in any tax advantaged investment planning should be reviewed independently with their tax and legal advisors. Changes to the tax code and other regulatory revisions could have a negative impact upon strategies developed and recommendations made. Past performance and/or forward looking statements are never an assurance of future results.
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