Grantor Trust Letters

Navigating Delaware Statutory Trusts: Grantor Trust Letters and Tax Reporting for Beneficial Interest Owners

Delaware Statutory Trusts (DSTs) have gained significant popularity among real estate investors for their flexibility, asset protection, and tax deferral advantages. However, understanding the intricate details of DSTs, particularly grantor trust letters and tax reporting requirements, is crucial for beneficial interest owners to maximize the tax benefits and mitigate risks associated with these investment vehicles. […]

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Utilizing DSTs for Remaining 1031 Proceeds (Cash Boot)

Utilizing a Syndicated Replacement Property in a DST Structure for Completing a 1031 Exchange

To defer tax when selling an investment property, investors must adhere to the Internal Revenue Service (IRS) regulations for a like-kind exchange under Section 1031. Even if an active real estate investor has identified a commercial investment property for exchange, a Delaware Statutory Trust (DST) can be instrumental in ensuring the exchange’s success. DSTs Enhance […]

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Replacing debt in a 1031 exchange

Understanding Debt Replacement in a 1031 Exchange

A 1031 exchange enables investors to defer taxes on capital gains by reinvesting the proceeds from a sold property into a new one, with a caveat: the full proceeds must be reinvested, including the loan amount from the sold property. If the relinquished property had a loan that was paid off at the sale, to […]

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Estate planning using DSTs

Considerations for using a Delaware Statutory Trust in estate planning A Delaware Statutory Trust (DST) is a legal entity that can be used for various purposes, including real estate investments and, in some cases, estate planning. When it comes to estate planning, DSTs are often employed in the context of 1031 exchanges, which allow individuals […]

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Navigating Delaware Statutory Trusts (DSTs) for Tax-Deferred Success

In the intricate world of tax-efficient wealth building, seasoned financial professionals and accredited investors in the commercial real estate arena understand the value of strategic tools. One such instrument gaining prominence is the Delaware Statutory Trust (DST) and its seamless integration with 1031 exchanges. This article delves into the relationship between DSTs and 1031 exchanges, […]

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