Real Estate: 1031 Exchanges and Delaware Statutory Trusts (DSTs)

Tax bills are one of the biggest obstacles investors face when considering a real estate sale. In this session, we explore the uses and benefits of 1031 Exchanges and Delaware Statutory Trusts (DSTs), which have become popular tools for helping investors to defer taxes and keep their equity working for them.

Learning Objectives:

• Understand how 1031 exchanges defer taxes by letting investors swap one investment property for another in a “like-kind” exchange.   
• Learn the rules that govern 1031 exchanges, including the need for a qualified intermediary, the need for like-kind property, and the adherence to strict closing deadlines.
• Recognize the benefits and risks of DSTs, which let investors use gains from a real estate sale to become passive, fractional owners of a trust that owns real estate in a way that satisfies 1031 exchange requirements.