Alan Geier

[email protected]


f: 866-237-7123

Capital Gains Tax Deferral

What is a Delaware Statutory Trust?

A DST is a separate legal entity formed as a trust under Delaware law. If properly structured, the DST will be classified as a grantor trust for federal income tax purposes and, as a result, the purchaser of a beneficial interest in the trust will acquire an undivided interest in the asset(s) held by the DST. An investor can use a beneficial interest in a DST as replacement property in a 1031 tax deferred exchange.


* The DST is the single owner and borrower.

* The loan is non-recourse to the investor. An investor purchasing a property on their own may have to arrange for financing and provide personal guarantees, whereas with a DST, only the lender underwrites the DST. The individual investor, therefore, is not underwritten by the lender.

* The transfer of beneficial interests in a DST can be easier as there is generally less paperwork and time required than buying a property directly.

* The DST allows cash investors (non-1031) the option to complete a 1031 tax deferred exchange when the current property is sold.

* Investors are not required to sign additional guarantees to the DST.

Under Section 1031 of the United States Internal Revenue Code (26 U.S.C.ss1031), the exchange of certain types of property may defer the recognition of capital gains or losses due upon sale, and hence defer any capital gains taxes otherwise due.

Do you want to make an appointment? Please contact us by phone at 1-646-373-2984 or through our online contact form.

Customized and Responsive Service

We specialize in representing real estate investments, which are owned by DST's (Delaware Statutory Trusts). A prepackaged, turnkey 1031 viable alternative, tailored for accredited investors only (a net worth of greater than 1 million dollars – exclusive of primary residence). Although speculative in nature, a DST investment has gained tremendous popularity since its inception in 2004 (IRS Revenue Ruling 2004-86) and may provide many advantages for the high net worth accredited individual. These include capital gains tax deferral (1031 exchange), asset protection and diversification as well as estate planning strategies. Investors can choose from different programs such as Office, Retail, NNN, Student Housing, Multi Family and Multi Use properties as are available in the market.

1031 Xit Strategies offers professional and reliable services, exacting to meet your specific needs. We offer in-depth consultations to understand your goals and current situations, as well as to craft a long-term solution that is right for you.

We strive to get a feel for who you are & what you'd like to accomplish.

We would be happy to provide you with more details about our company and what we can do for you.   

Contact us at 1-646-373-2984 contact form.