Understanding the DST Exchange Boundary
See where real estate rules end and securities rules begin.
What a DST Is
A Delaware statutory trust, or DST, is a legal structure that can hold real estate. Investors can buy a beneficial interest in the trust. That interest is often treated as a security. A DST interest is not automatically eligible for 1031 treatment. Your CPA and securities professional confirm eligibility case by case.
Where the Tax Rules and Securities Rules Meet
Section 1031 covers exchanges of real property for like-kind real property. A DST interest may qualify in some structures, but it may also be a private securities offering. SEC rules often limit these offerings to accredited investors, based on net worth or income thresholds. Eligibility rules vary by offering. We do not recommend any DST.
Who Confirms What
We handle the real estate side: sale timing, property comparisons, and closing coordination. Your CPA confirms tax treatment and eligibility. Your securities professional or attorney confirms whether a specific DST offering fits your accreditation status and goals. We are not a securities broker and do not sell DST interests.
Sources
Educational only, not tax advice. Your CPA must confirm tax treatment, timing, participation, basis, and filing before you act.
Common questions
Clear answers first. If one question changes the deal, bring it into the review before you move money.
Q1Does a DST always qualify for 1031 treatment?+
No. A DST interest may or may not qualify, depending on how the trust is structured and how it is used. We do not say any specific DST qualifies. Your CPA and securities professional review the structure and confirm eligibility before you commit funds.
Q2Who can invest in a DST?+
Many DST offerings limit participation to accredited investors. Thresholds often include a net worth over one million dollars excluding your primary residence, or income over two hundred thousand dollars individually, or three hundred thousand with a spouse, for the two prior years. Rules vary by offering. A securities professional confirms whether you qualify.
Q3Do you recommend specific DST sponsors?+
No. We are not a securities broker and do not recommend or sell DST offerings. We help with the real estate side of your exchange. Your CPA, attorney, and securities professional evaluate specific DST sponsors and offerings.
Talk Through Your Exchange Options
Book a Real Estate Review to map your timeline and property options. We coordinate with your CPA and securities professional so every decision fits your full picture, not just one property.
Talk Through Your Exchange Options
Book a Real Estate Review to map your timeline and property options. We coordinate with your CPA and securities professional so every decision fits your full picture, not just one property.
Book a Real Estate ReviewNext steps
Keep moving forward
How to Evaluate a DST Offering Before You Commit
A step by step framework for evaluating DST offerings: property, sponsor materials, debt, fees, and exit terms. No inventory, no rankings.
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