Four Ways Savvy Investors Use DSTs for Their 1031 Exchanges

DSTs can help investors successfully complete a 1031 exchange, achieve diversification, avoid expensive capital gains taxes and more.

An older couple walk outside a senior housing facility on a sunny day.
(Image credit: Getty Images)

Regardless of what economic trends are taking place, Delaware Statutory Trusts (DSTs) continue to provide investors certain timeless benefits for their 1031 exchanges and direct cash investments, including deferring capital gains taxes, eliminating the headaches of active management (think the Three T’s: tenants, toilets and trash) and the ability to create a more diversified portfolio. On top of that, DSTs have the potential to provide investors consistent and durable income streams with the ability to achieve modest appreciation potential.(1)

Subscribe to Kiplinger’s Personal Finance

Be a smarter, better informed investor.

Save up to 74%

Sign up for Kiplinger’s Free E-Newsletters

Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.

Profit and prosper with the best of expert advice - straight to your e-mail.

Sign up

This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

To continue reading this article
please register for free

This is different from signing in to your print subscription

Why am I seeing this? Find out more here

Dwight Kay
Founder and CEO, Kay Properties and Investments, LLC

Dwight Kay is the Founder and CEO of Kay Properties and Investments LLC. Kay Properties is a national 1031 exchange investment firm specializing in Delaware statutory trusts. The platform provides access to the marketplace of typically 20-40 DSTs from over 25 different sponsor companies. Kay Properties team members collectively have over 340 years of real estate experience, have participated in over $39 billion of DST 1031 investments, and have helped over 2,270 investors purchase more than 9,100 DST investments nationwide.