Delaware Statutory Trusts
Everything you need to know about DSTs as replacement property.
DST Eligibility: IRS Revenue Ruling 2004-86 Explained
Before 2004, the IRS hadn't explicitly blessed Delaware Statutory Trusts as 1031 replacement property. Revenue Ruling 2004-86 changed that by confirming DSTs holding real property are treated as like-kind property for exchange purposes.
The Seven Deadly Sins of DSTs: What They Are and Why Investors Should Care
DSTs must follow strict operational rules to maintain 1031 eligibility. These seven restrictions, derived from IRS Revenue Ruling 2004-86, limit flexibility but preserve the passive investment character that makes DSTs work.
1031 to DST to 721 (UPREIT): How the Path Works
A growing number of investors are using a three-step strategy: 1031 exchange into a DST, then when the time is right, contribute the DST interest into a REIT's operating partnership via a 721 exchange. This path enables tax-deferred access to REIT diversification.
DST Fees Explained: Where Your Returns Go
DST investors often ask why returns seem lower than expected. The answer is fees. Understanding the full fee structure, from upfront acquisition costs to ongoing management, is critical to evaluating whether a DST investment makes sense.
DST Due Diligence Checklist: What to Read in the PPM
The Private Placement Memorandum is the governing document for your DST investment. Most investors don't read it thoroughly. This checklist walks you through what to review and what questions to ask before committing capital.
DST Financing and Debt Replacement in 1031 Exchanges
In a 1031 exchange, you must replace both equity and debt to avoid mortgage boot. DSTs come with built-in financing, but coordinating your debt replacement with the available DST financing requires careful planning.
DST Exit Strategies: What "Full Cycle" Means
Most DST investors hold their interests to "full cycle," meaning the property is sold and proceeds are distributed. But that's just one exit path. Understand your options at the end of a DST hold.
What Is a Delaware Statutory Trust? The Complete DST Guide
A comprehensive guide to Delaware Statutory Trusts: how they work as 1031 replacement property, the IRS rules that govern them, what investors receive, fees, risks, and who they're best for.
How to Evaluate a DST Sponsor: Due Diligence Guide
What to look for when evaluating a DST sponsor: track record, property quality, fee structure, alignment of interests, and the warning signs that should make you walk away.
DST Pros and Cons: A Balanced Assessment for 1031 Investors
An honest look at the advantages and disadvantages of DST investing through a 1031 exchange: what you gain, what you give up, when the tradeoff makes sense, and when it doesn't.