When using our DST, you can receive income every month, every quarter or once a year. Some of our clients want to defer their trust payments for a year or longer. It’s your call.

Unlike a 1031, the DST can provide liquidity and diversification. For example, we can invest the trust assets in a variety of liquid investments such as stocks, bonds, fixed income and other liquid investments to provide immediate liquidity should the need arise to take some of the sales proceeds out of the trust. If there isn’t a need for potentially immediate liquidity, there are other investments that may provide less liquidity but the potential for higher returns.

Unlike a 1031, our trust can provide a great deal of investment diversification whereas a 1031 can only diversify types of real estate. Our diversification strategies and constant portfolio reviews help us stay on top of the investment game. If we believe that a certain change or changes, we can not do so without your written approval. 

We are an end game that a 1031 isn’t. When you exit a 1031 for good, you get taxed on your gains going back to the basis of your original property. Then you can generate an after-tax retirement income. With the DST, you can exit a 1031 or the sale of a property and receive a pretax lifetime retirement income. The DST is a much better option for retirement income because the retirement income is based on the gross sales proceeds. 

The DST provides a much better opportunity to maintain family wealth. One of the reasons to buy investment properties is the benefit of depreciation. Every time you buy and sell a property using our trust, not only can we defer most if not all the depreciation recapture but when you buy another property using the DST, you get a new depreciation schedule. You don’t with a 1031. 

In addition, if you are selling a large legacy property using the DST, it may be possible to take the property out of the estate to possibly reduce the family’s federal estate tax burden. A 1031 can’t so using our trust can absolutely maintain family wealth.

Because there are so many requirements to complete a 1031, it’s not always possible to complete a 1031 successfully. When a 1031 fails, it becomes a taxable event to the seller UNLESS they are using our trust as a backup plan. It probably makes more sense to use our trust in the beginning but if not, we can prevent the failed 1031 from becoming a taxable event and keep you in the game to buy more real estate at any time in the future.

When you have more than 1 property owner, in order to defer taxes using a 1031, all property owners must agree to be part of a 1031. If one property owner wants to take his/her profits and run to Vegas (which may be a good strategy), a 1031 won’t work. Enter the Deferred Sales Trust. Any of the property owners can use the DST to defer their taxes regardless of what any other partner decides to do. If all the partners decide to transact a DST, each of them will create their own trust and have their own separate investment portfolio.