New York City Real Estate Attorney Natalia Sishodia Discusses the Different Benefits of a 1031 Exchange Delaware Statutory Trust (DST)
June 09, 2022 at 15:58
New York City real estate attorney Natalia Sishodia releases a new article (https://sishodia.com/benefits-of-a-1031-exchange-delaware-statutory-trust-dst/) explaining the different benefits of a 1031 Exchange Delaware Statutory Trust (DST). According to the lawyer, New York real estate investments can be made in many different forms so that investors have more options.
"A real estate investment may also involve many tax considerations, so it is normal for investors to look for options that will limit their tax liability. This is where a 1031 exchange comes in,” says the New York City real estate attorney.
The lawyer explains that a 1031 exchange is a swap/exchange for property that is used exclusively for investment or business purposes. An investor might be able to exchange one investment property for another of the same kind to avoid capital gains.
Attorney Natalia Sishodia also mentions that there is no limit to how often or how many times an investor can do 1031 exchanges. Investors may find a 1031 exchange beneficial, but it can also be difficult to comply with the requirements of the IRS. This is why many investors choose the Delaware Statutory Trust, (DST).
In the article, attorney Sishodia says that a DST entity is one that is recognized as a trust establishment. DST can be used to refer to similar entities in any state, and not only in Delaware. A DST is often used to describe real estate investments and it is most popular with 1031 exchanges.
According to the real estate lawyer, “To benefit from DSTs, investors can sell the original investment property for an interest in a DST and become a fractional investor alongside other owners/investors. By choosing to transfer ownership from a 1031 property into a DST, the investor/property owner is no longer responsible for the burdens of managing the 1031 property.”
Lastly, attorney Natalia Sishodia emphasizes how important it is to seek the help of an experienced attorney when it comes to real estate transactions. Having a skilled real estate attorney may help ease the burden of understanding complex terms from the customer and may guide them into making a more informed decision.
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