What Investors Should Know Before Investing in a DST
PAID ADVERTISEMENT This article is paid advertising content submitted by a third-party contributor. A Delaware Statutory Trust (DST) offers passive income and turnkey 1031 exchange solutions, making it attractive to real estate investors looking to defer capital gains taxes. However, the fee structures behind these investments can be complex and unclear. Understanding the true cost of a DST requires careful due diligence to avoid hidden expenses that can materially affect your returns. Editor’s Note: IRS Revenue Ruling 2004-86 addresses a specific Delaware Statutory Trust structure and concludes that an interest in the qualifying trust described in the ruling may be treated as an interest in real property for Section 1031 purposes. Section 1031 eligibility depends on the DST structure and the facts of the exchange. The IRS also states that cash or other non-like-kind property received during an exchange may create recognized gain. Tax deferral doesn’t eliminate the underlying tax...