Delaware Statutory Trusts Benefits

1031 Exchange Eligibility: DSTs are structured to comply with IRS rules, allowing investors to defer capital gains taxes when selling appreciated real estate. "A DST allows you to: Defer those taxes using a 1031 exchange."

Depreciation and Expense Deductions: Investors in DSTs are viewed as direct real estate owners by the IRS, enabling them to deduct their share of expenses and depreciation, potentially reducing tax liabilities. "DST investors can deduct their share of expenses and depreciation, potentially reducing their tax liabilities."

Hands-Off Ownership: DSTs provide a way to invest in real estate without the responsibilities of being a landlord, such as dealing with tenants, maintenance, and property management. "DSTs are great for investors who want to stay in real estate but avoid the headaches of being a landlord."

Access to Institutional Properties: Investors can gain fractional ownership in larger, institutional-quality properties like apartment complexes, office buildings, and warehouses that might otherwise be inaccessible. "You get access to properties you might not afford solo, but you’re a passive investor with no control over management."

Diversification: DSTs allow for diversification across multiple properties, asset classes, and geographical locations, which can help mitigate risks associated with single-property investments. "This diversification can help mitigate some of the risks associated with traditional single-property investments."

Passive Monthly Income: Many DSTs are structured to provide investors with a steady stream of passive monthly income. "Receive passive monthly income."

Potential for Appreciation: While not guaranteed, the underlying real estate assets within a DST can appreciate, offering potential for capital gains upon exit. "It’s returning about 5% (annualized) so far in straight up return, and then hopefully upon exit they will appreciate."