Today, Bruce Hosler of Hosler Wealth Management explains the Delaware Statutory Trust, or DST, and how it can be used as part of a 1031 Exchange.

First, let's define a 1031 Exchange - it allows property owners to take the proceeds of a sale of real estate and reinvest those same proceeds into another property without having to recognize a capital gain and without having to pay the taxes on the sale. They get to defer the gains and add them to the new property.

Within a 1031 Exchange, a DST is a trust that is set up to hold the properties in question. These can be used for rental or investment properties, not your primary home, especially when they appreciate in value, as most real estate has in recent years.

Bruce explains how non-traded REITs, or real estate investment trusts, can be used to form a DST, and what the rules are with regard to how long the properties need to be held. These are important to know.

A Delaware Statutory Trust incorporates basic investment principles, such as diversification, rollovers, and more. Bruce and Jon explain this in greater detail.

Finally, we walk through who might be a good candidate for a DST, and who it might not be good for.

Bruce Hosler and his team have a lot of experience in this area. If you'd like to ask the folks at Hosler Wealth Management about this, or anything else regarding your finances, visit them online at https://www.hoslerwm.com/

Or call them in their Prescott office at 928-778-7666 or their Scottsdale office at 480-994-7342.

For more podcast episodes, visit our podcast website at https://protectingwealthpodcast.com/

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