Expert DST & 1031 Professional with Over 35 Years of Experience
Welcome to DST 1031 Investments where we specialize in investment real estate transactions & 1031 exchanges.
What is a DST?
A Delaware Statutory Trust (DST) is a separate legal entity created as a trust under the laws of Delaware in which each owner has a “beneficial interest” in the DST for Federal income tax purposes and each owner is treated as owning an undivided fractional interest in the property.
In 2004, the IRS released Revenue Ruling 2004-86 which allows the use of a DST to acquire real estate where the beneficial interests in the trust will be treated as direct interests in replacement property for purposes of IRC §1031.*
What is a 1031 Exchange?
A 1031 tax-deferred exchange enables investors to reinvest the proceeds from the sale of investment property in one or more replacement properties without incurring immediate federal (and state) capital gains taxes on the appreciated value.
When the sale and purchase meet the 1031 exchange criteria, taxes are deferred until the newly acquired property is sold. This deferral strategy can be repeated through any number of exchanges until the tax liability passes into the individual’s estate upon death.
Why Robert Zink
Robert has been involved in 100s of exchanges involving 10s of millions of dollars.
Over the past several years, Robert has assisted clients with the wealth accumulation phase of real estate investing. As real estate investors age, they often look for a less intensive management option to owning real estate outright.
Today Robert focuses on DST investments which provide freedom from management responsibilities and possible cash calls. DSTs are 1031 eligible, and provide diversity of markets and asset classes with no investor management responsibilities. Robert can assist you with multiple investment options for your next 1031 exchange.
Testimonial
“We were introduced to Robert Zink by our 1031 Exchange accommodator when we sold our 8 plex. Robert explained how in investing in DSTs was a viable 1031 option and we could diversify in to other markets and asset classes.
We were unhappy with the politics in the market where we were invested and the lack of population and job growth, Robert patiently helped us through the exchange process and helped us invest in three DST in three different markets and two different asset classes.
We no longer have any management responsibilities or inconvenient phone calls. Robert made the whole process seamless and stress free.
We wouldn’t use anyone else for our next 1031 exchange.”
Disclosure: This testimonial may not be representative of the experience of other customers. This testimonial is no guarantee of future performance or success.
Frequently Asked Questions
Find quick answers to common questions about DST and 1031 services.
A DST is a separate legal entity created as a trust under Delaware statutory law. To use a DST in a Section 1031 syndication program, it must comply with the requirements of IRS Revenue Ruling 2004-86 and must also (if the DST’s property is debt financed) meet lender requirements. To meet these requirements, each DST must:
- be a Special Purpose Entity (SPE)
- be bankruptcy remote; and
be a passive holder of real estate, with minimal trustee powers over the operation of the DST’s real estate, and no powers over the DST or its real estate at all in the hands of the DST’s beneficiaries.
The term 1031 Exchange is defined under section 1031 of the IRS Code. (1) To put it simply, this strategy allows an investor to “defer” paying capital gains taxes on an investment property when it is sold, as long as another “like-kind property” is purchased with the profit gained by the sale of the first property.
In a DST transaction the investor sells their, property and place the funds with their accommodator. The investor then identifies one or more DSTs. When the investor has decided on which DST or DSTs they want to purchase they direct the accommodator to purchase the DST on their behalf.
DSTs offer potential tax advantages, diversification, professional management, and the ability to invest in institutional-grade properties.
Yes, a DST can be used as a replacement property in a 1031 exchange, allowing investors to defer capital gains taxes.