DST Disposition: Four Exit Pathways for Investors.
DST hold periods typically run five to ten years. When the property is sold, investors have several options for handling proceeds, each with different tax consequences.
Cash Out
Take proceeds and pay deferred capital gains taxes. Simple, taxable.
1031 Again
Roll proceeds into a new DST or other qualified replacement property. Continue deferral.
721 UPREIT
Contribute DST interests to a REIT operating partnership for OP units. Subject to PPM provisions.
Step-Up at Death
Hold DST interests until death. Heirs receive a stepped-up basis. Deferred gains can be reset.
Accredited investors only. Verification required.
DST offerings are private placements available exclusively to accredited investors as defined in SEC Rule 501. Verification is required before subscription. Minimums typically start at $100,000.
View the active DST offering, talk to our team, or keep learning at our companion education site.