Used by real estate investors, the Delaware statutory trust is an ownership model wherein a separate legal entity is used to defer capital gains through taxes with the utilization of a 1031 tax-deferred exchange. Compared to other ownership models, the DST’s advantage is the trust’s ability to obtain favorable financing terms as the lender views the entity as only one borrower.
Delaware Statutory Trust
Used by real estate investors, the Delaware statutory trust is an ownership model wherein a separate legal entity is used to defer capital gains through taxes with the utilization of a 1031 tax-deferred exchange. Compared to other ownership models, the DST’s advantage is the trust’s ability to obtain favorable financing terms as the lender views the entity as only one borrower.
