FAQs

DSTs last for 5 years on average, can be held up to 10 years.

DSTs are illiquid. If you sell, you will owe the tax and likely the purchaser will look for a discount.

A DST investor is completely passive, operationally as well as financially.

Yes.

Yes.

Yes.

No, to be considered a “Like Kind Exchange,” it’s properties used as investments or in trade.

• 3 property rule-Any 3 properties any dollar amount no limitations in how much you can purchase

• 200% rule This rule says that the taxpayer can identify any number of replacement properties, as long as the total fair market value of what investor identifies is not greater than 200% of the fair market value of what was sold as relinquished property.

• 95% rule The 95% rule is a rule in a 1031 exchange transaction that allows real estate investors to identify more than three replacement properties if they acquire at least 95% of the value of those properties. The total value of the properties identified must be more than 200% of the value of the relinquished property. This rule is not often used because investors need to acquire everything they identify to make it work.