The full abbreviation of DST is Delaware Statutory Trust Exchange. DST 1031 allows investors to replace their ownership of a property with a new one. At the same time it creates space for deferring any due capital gain taxes.
A 1031 structure ownership is based on 1031 exchange requirements. As a DST 1031 owner, your interests in a property remain undivided. So, you can claim a share of the whole corporate office building, shopping center, industrial warehouse, apartment complex; instead of a tenant space, only.
Benefits of a DST Investment
- In term of investment size, diversification, and timing, DST 1031 is more flexible than a regular 1031 exchange.
- During the 45-day long identification window the door is open for additional investment.
- Besides capital appreciation potential, there is an opportunity, too, for a current income flow.
- DST 1031 is structured in such a way so that a buyer can take the advantages of IRS Revenue Procedure.
- Since you are investing in professionally-managed investment property, it is free of the hassles of direct property management.
- An investor can easily acquire a high value investment-grade property.
- Subject to all appreciation and tax advantage related to real estate.
- Available for direct cash investors.
- Non-recourse, pre-arranged, fixed-rate, and assumable financing. 0% to 80% leverage with easy approval.
- Easily satisfiable conditions for the 45-day identification period and the 180-day closing and exchange span.
These are some of the major procedures of DST 1031. For more details on legal, investment planning and tax you should be consulting a specialist.
If you are not any more interested in handling daily management responsibilities, then, DST 1031 is for you. It, in the process, allows you to diversify interests in to multiple ownerships, rather than just relying on one property.