Most real estate savvy people know about the 1031 exchange. It’s a section of the tax code that allows you to defer paying taxes on capital gains as long as you use the money from the sale to purchase a similar, “like-kind” property.
However, what most don’t know is that DST real estate trusts qualify as “like-kind” purchases. What does this mean for home sellers? That there’s no rush to find the “right” property to put your money back into. This is extremely helpful for people who want to get out of the housing market for a while, or who can’t find the right property to reinvest in.
DST stands for Delaware Statutory Trust. The structure of these trusts places all the decision-making into the hands of an experienced sponsor-affiliated trustee, which would allow clients to become passive real estate owners. This not only means you don’t have to own/maintain an actual property, it also means that your purchase is diversified and protected.