Delaware statutory trust

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Delaware statutory trust

Post by billthecat » Mon Oct 22, 2018 3:39 pm

I was browsing around and stumbled across DSTs (see ... c=t&rfun=4, a service that facilitates 1031 exchanges. But see ... ght-choice).

What do you think about selling an individual investment property and doing a 1031 exchange into a REIT via a DST?

I have a property that I would like to sell and that, due to depreciation, would yield on the order of $300k+ in capital gains (I think the passive activity losses would still be taken immediately, deducted against earned income). It would be nice to take the passive loss now and defer capital gains, but on the other hand moving the funds into a DST, and then to a specific REIT years later (as opposed to a REIT index fund) would improve the situation but not completely. I would still have the same amount of money fully invested in a single property, although it would be a better one that’s professionally managed.

Should I just pay the taxes (15% federal, 3.8% NIIT, ~10% state) upon sale and roll the funds into my 3-fund portfolio (so, no REIT at all), or is this alternative (DST) something worth exploring?
We cannot direct the winds but we can adjust our sails.

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