Benefits of DSTs

The DST is the single owner and agile decision maker on behalf of investors.

All 1031 exchange investments receive a step-up in cost basis so your heirs will not inherit capital gain liabilities, and provides them with professional real estate management versus the burden of hands-on management.

Most real estate investors can’t afford to own multi-million dollar properties. DSTs allow investors to acquire partial ownership in properties that otherwise would be out-of-reach.

If for some reason the investor can’t acquire the original property they identified, a secondary DST option allows them to meet the exchange deadlines and defer the capital gains tax.

Loans are nonrecourse to the investors. The DST is the sole borrower.

Any remaining profit on the sale of your relinquished property is considered “boot”. This remaining money becomes taxable unless eliminate it. The excess cash (boot) can be invested in a DST to avoid incurring tax.

DSTs can accommodate much lower minimum investments, whereas 1031 exchange minimums often are $100,000.

Investors can divide their investment among multiple DSTs, which may provide for a more diversified real estate portfolio across geography and property types.

The DST structure allows investor to continue to to exchange real properties over and over again until the investor’s death.