Big DST Questions, Answered
Twenty plain-English guides to Delaware Statutory Trusts and 1031 exchanges.
Basics
What Is a Delaware Statutory Trust (DST)?
A plain-English explanation of how DSTs work, who owns what, and why they're used in 1031 exchanges.
Who Qualifies to Invest in a DST?
Accredited investor standards and why most DSTs are limited to them.
DST vs. REIT: What's the Difference?
Both offer passive real estate exposure, but only one qualifies for a 1031 exchange.
DST vs. Tenant-in-Common (TIC)
Why many sponsors moved from TIC structures to DSTs, and how they compare.
How Do DST Investors Get Paid?
Distributions, sale proceeds, and what drives each.
What Kinds of Property Do DSTs Own?
From apartments to distribution centers, a look at common DST asset classes.
1031 Rules
How Does a 1031 Exchange Work?
The mechanics of deferring capital gains by reinvesting sale proceeds into like-kind real estate.
The 45-Day and 180-Day Deadlines, Explained
What has to happen by each deadline, and what happens if you miss one.
The Three Identification Rules
The three-property rule, the 200% rule, and the 95% exception.
The Most Common 1031 Exchange Mistakes
Avoidable errors that cause exchanges to fail or create taxable boot.
Taxes
What Is 'Boot' in a 1031 Exchange?
The taxable leftover that catches many exchangers off guard.
Depreciation Recapture, Explained
Why the depreciation you claimed for years can come back when you sell.
How Much Tax Will I Owe When I Sell?
The layers of tax that can apply to the sale of investment real estate.
Risks & Due Diligence
Planning
How Long Do DST Investments Last?
Typical hold periods and what happens when the property sells.
Can I Use a DST as a Backup Replacement Property?
How investors use DSTs to protect an exchange when a deal falls through.
DSTs and Estate Planning
How DST interests may simplify passing real estate to heirs.
What Happens When a DST Property Sells?
Your choices at the end of a DST's hold period.
Is a DST Right for Me?
A simple framework for deciding whether to explore DSTs further.