Delaware Statutory Trust (DST) is a legal entity that is created under Delaware law and is commonly used in real estate investment transactions. DSTs are a powerful tool for investors who want to own a fractional interest in high quality real estate assets.
The primary advantage of DSTs is that they allow investors to own a fractional interest in a large, professionally managed real estate asset without the administrative burden of managing the property. DSTs provide investors with a passive investment opportunity that generates
income through rental income and potential appreciation of the property upon disposition.
DSTs are also popular because they offer tax advantages to investors. When a DST is structured properly, investors can take advantage of a tax-deferred exchange, allowing them to defer paying taxes on capital gains until a later date. Additionally, investors in a DST may be able to take advantage of depreciation deductions, which can reduce taxable income.
One of the highlights of DSTs is the flexibility they provide investors. DSTs can be used to invest in a wide range of real estate assets, including commercial, industrial, retail, and residential properties. Investors can choose the type of real estate asset that aligns with their investment goals and risk tolerance.
Another advantage of DSTs is the ability to invest with other like-minded investors. This allows investors to pool their resources and invest in larger and higher-quality properties than they would be able to on their own. Additionally, DSTs are highly regulated by the SEC, which provides investors with added protection and transparency.
In summary, DSTs are an excellent investment opportunity for investors who are looking for a passive real estate investment that offers tax benefits, flexibility, and the opportunity to invest in high-quality real estate assets. Please consult with your trusted tax advisor regarding all tax advantaged strategies.