Delaware Statutory Trusts (DST’s)
1031 Exchanges into Delaware Statutory Trusts (DST’s) - Tired of being a landlord but want the income without paying the capital gains taxes?
Section 1031 of the tax code allows you to delay (and potentially permanently avoid) paying capital gains taxes when you sell an investment property by reinvesting the proceeds from the sale in a like kind property of equal or greater value.
First and Main Financial facilitate 1031 exchanges into Delaware Statutory Trusts without the traditional 6% to 7% commission paid to a DST broker. This 6% to 7% that would have been paid in commissions goes back to the client to be added as additional ownership in the DST.
The real estate owned by the DST is professionally managed. The owner is no longer a landlord and simply receives monthly dividends until the DST is liquidated (usually in about 7 years). Capital from liquidation of one DST can be rolled into another and the assets can be donated or passed to heirs for a step up in basis.