A 1031 exchange (named after Section 1031 of the IRC) lets you defer capital gains taxes when you sell investment or business-use real property — provided you reinvest the proceeds into like-kind replacement property. You have 45 days to identify candidates and 180 days to close. Most investment real estate qualifies. Primary residences and property held for sale do not. A qualified intermediary must hold the proceeds during the exchange.

A Delaware Statutory Trust is a legal entity that holds real estate and allows multiple investors to own fractional interests. DSTs qualify as like-kind replacement property in a 1031 exchange — which makes them a practical solution for investors who want to complete an exchange without taking on active management. The underlying property is typically institutional-quality: multifamily, industrial, or net-leased commercial real estate managed by a professional sponsor.

A DST may be worth considering if you want to exit active management, diversify across property types or geographies, or access institutional-quality real estate you couldn't purchase individually. The tradeoff is liquidity: DST interests are not easily resold, and you're relying on the sponsor's management. Whether a DST fits depends on your income needs, tax situation, timeline, and estate planning goals. We model both paths before recommending anything.

If you've missed the 45-day identification window, a 1031 exchange is no longer available for that transaction. However, depending on your situation, there may be other strategies worth reviewing — including installment sales, Qualified Opportunity Zone investments, or charitable structures. The best time to plan is before a sale closes. Contact us before you list, not after you've signed.

When a DST investor passes away, heirs typically receive a stepped-up cost basis to fair market value at the date of death. This can eliminate the deferred capital gains that accumulated during the investor's lifetime — one of the significant estate planning advantages of holding property through a DST versus selling outright. Your estate planning attorney should be involved in structuring this alongside us.

Yes. Farmland qualifies as like-kind real property for a 1031 exchange. You can exchange into other investment real estate, including a DST holding institutional-quality agricultural or commercial property. The exchange must be set up before closing, and a qualified intermediary is required. We work regularly with farm families on this kind of transition.

Yes. As a Registered Investment Adviser, we are held to a fiduciary standard — legally required to act in your best interest, not in the interest of any product sponsor or our own compensation. Not all advisers who offer DSTs operate under this standard. When large, irreversible decisions are involved, it's a distinction worth asking about.

Most DST investments have a projected hold period of 5 to 10 years, though actual timelines vary. DSTs are illiquid — you cannot sell your interest on demand. Enter a DST with the expectation that your capital will be committed for the full projected hold. At exit, the property is typically sold and proceeds distributed to investors, who may then choose to do another 1031 exchange.