{"id":2599,"date":"2017-10-24T18:59:57","date_gmt":"2017-10-24T18:59:57","guid":{"rendered":"https:\/\/nationalland.com\/blog\/?p=2599"},"modified":"2023-09-29T11:08:58","modified_gmt":"2023-09-29T15:08:58","slug":"delaware-statutory-trusts-101","status":"publish","type":"post","link":"https:\/\/nationalland.com\/blog\/delaware-statutory-trusts-101\/","title":{"rendered":"DST Basics: Understanding Delaware Statutory Trusts"},"content":{"rendered":"

Known as one of the most popular tools in the land industry for deferring capital gain taxes, 1031 Exchanges<\/a> give landowners the opportunity to invest in new properties. But for the landowners who have managed their property for decades and may be ready for a break, but still want to own real estate, a tax savings vehicle known as a Delaware Statutory Trust (DST) could help.<\/p>\n

What\u2019s a Delaware Statutory Trust?<\/strong><\/p>\n

A DST is a separate legal entity created under Delaware law that qualifies under Section 1031 in the Internal Revenue Code as a tax-deferred exchange. In 2004, the IRS ruled that a DST is recognized as replacement property in a 1031 tax-deferred exchange.<\/p>\n

A DST allows a person to have fractional ownership interests in real estate. An investor (beneficiary) of a beneficial interest in the DST acquires an undivided interest in the asset(s) that are held by the DST.<\/p>\n

What are the benefits of a DST?<\/strong><\/p>\n