This presentation will discuss the basics of the 1031 process, including a brief history and overview of DSTs; why taxpayers exchange into fractional ownership programs; who might be appropriate for DSTs; how to choose a qualified intermediary; and understanding the identification rules and tax considerations when realizing a gain on the sale of real property. 

DST properties are considered “like-kind” replacement properties pursuant to IRC Revenue Ruling 2004-86. The DST has become the vehicle of choice for fractionalized 1031 exchange properties. Investors can make 1031 exchanges into multiple DST properties to lower the potential risks of real estate investing. Typical minimum investments are $100k, and asset classes range from multifamily apartments, triple net lease properties (NNN), medical office properties, and all-cash/debt-free properties.

The course will go over frequently asked questions regarding DST 1031 and real-world case studies of the client investing in different scenarios. We will cover using leverage with DST properties and all-cash/debt-free DST properties for 1031 exchanges. Course attendees will also be able to see various DST 1031 property case studies and example properties.

Learning Objectives:

• Identify how DST properties are structured and how they work


• Recall the various types of DST properties available in today’s market


• Define the latest exchange trends affecting investors in the current investment markets


• Identify various options available to an investor using DSTs


• Recall the process of due diligence for DSTs, qualified intermediaries, and others