DSTs are popular options in 1031 exchanges of real estate, but many people have questions about how to deal with property identification rules when it comes to DSTs.
DST Interest & Property Identification
There’s some uncertainty as to whether a DST interest constitutes a single property or if each property owned by the trust must be counted separately.
To clear up this potential confusion, we typically suggest that you look at how many properties are owned by all of the DSTs you plan to purchase. If the total number of properties you intend to purchase is more than three, we typically suggest that you make your property identification using the 200% rule just to be on the safe side.
Reduce Your Capital Gains Tax Burden with a 1031 Exchange
A 1031 exchange allows you to reduce your capital gains tax burden when selling like-kind real estate held for investment or business purposes. When set up properly, a 1031 exchange can save you a lot of money by deferring your capital gains taxes on the sale of your qualifying real property. Contact a qualified intermediary at CPEC1031, LLC today to learn more about the like-kind exchange process and see if your property is a good fit for 1031 exchange treatment.
Start Your 1031 Exchange: If you have questions about 1031 exchanges, feel free to call me at 612-643-1031.
Defer the tax. Maximize your gain.
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