Delaware Statutory Trusts
A Delaware Statutory Trust, or DST as they are often called, is a separate legal entity created essentially like a business trust under the state of Delaware statutes.
Qualifies for 1031 Exchange Treatment
The purchase or sale of a beneficial interest in a Delaware Statutory Trust or DST qualifies for tax-deferred exchange treatment under Section 1031 of the Internal Revenue Code. The Internal Revenue Service clarified this position through the issuance of Revenue Ruling 2004-86.
The Delaware Statutory Trust or DST is rapidly taking the place of the old Tenant-In-Common Investment Property interests as the new investment rave. The Delaware Statutory Trusts provide investors with numerous benefits that the Tenant-In-Common Investment Property interest never did provide.