Using the Delaware Statutory Trust (DST) as an Inflation Defense
According to the National Council of Real Estate Investment Fiduciaries (NCREIF), "Commercial real estate investments have historically demonstrated strong resilience against inflation, often outperforming other asset classes.
THE POWER OF THE DELAWARE STATUTORY TRUST
DSTs are a unique investment structure that allows investors to pool their resources and acquire fractional ownership of high-quality, income-generating commercial real estate properties.
These properties can include apartment buildings, office spaces, retail centers, and more.
DST INFLATION PROTECTION CHARACTERISTICS
DSTs can offer protection in rising-price environments in a few ways. Real Asset Ownership Income Stability Diversification Lease Structure
TAX ADVANTAGES OF 1031 EXCHANGE
DSTs Tax Efficiency: DSTs are considered like-kind property for investors who sell an investment property and replace that property by using a 1031 Exchange. When investors exchange one property for another under Section j1031 of the Internal Revenue Code, they can defer capital gains taxes. This allows investors to keep all their sale proceeds at work, enabling them to utilize the power of compounding.
HOW TO GET STARTED WITH DSTs
As an investor interested in the potential advantages of DSTs aa an inflation hedge, it's essential to work with professionals who understand the intricacies of this investment vehicle.
This document is designed for general information only. The information presented in this document should not be construed to be formal legal or tax advice nor the formation of a lawyer/client.
For further information please contact me at www.kmckernanlaw.com kevin@kmckernan.com or 718-317-5007.