In the past few years, Delaware Statutory Trusts (“DSTs”) have become increasingly more prevalent among the real estate investor community, primarily because they qualify as “like-kind” real estate for the purposes of a 1031 exchange. In other words, investors can direct the proceeds from the sale of their relinquished property towards purchasing a beneficial interest in a DST.
DSTs can be an effective tool for maintaining wealth as they help investors defer tax from the sale of a real estate asset, realizing immediate and significant tax savings. However, like all real estate related investments (and even more so with those that carry special deferral tax benefits), DSTs come with both risks and rewards.
Click the button below to learn more about the pros and cons of this investment strategy from Grassi’s Real Estate advisors. For more information, please contact your Grassi advisor or Evan Fox , Real Estate Tax Partner, at 212.223.5073 or [email protected].