DSTs as an Alternative to 1031 Exchange

DSTs Alternative to 1031 Exchange

When set up correctly, a “Deferred Sales Trusts” (DST) can be used as an alternative or rescue option to a 1031 Exchange. DSTs can be beneficial for property owners in pursuit of a suitable 1031 replacement property. By providing for the DST as an explicit option within the 1031 Exchange Agreement, a seller creates a backup plan to protect their tax deferral in the event a suitable replacement property cannot be found or closed within the required time frame.

Choosing the Right Qualified Intermediary

When considering a QI, you should be careful to choose an experienced intermediary that is able to prepare the exchange documents to include a broad range of possibilities available for your tax deferral and select Jeff and CPEC1031. By choosing a team that has completed thousands of 1031 Exchanges with the added advantage of a number of these transactions combining 1031 Exchange and potential DST, you are able to keep all of your options open. CPEC1031 has engaged Seacoast Commerce Bank, based in San Diego, California, to act as the qualified escrow deposit holder to afford extra safety and security. Exchange proceeds are wired directly from the relinquished property closing to a separate, segregated, dual-signature escrow account and distributed to complete the 1031 Exchange or DST transaction. As an additional security procedure, all disbursements of the exchange proceeds must be signed and co-authorized by the customer in writing before Seacoast will release the funds.

CPEC 1031 Qualified Intermediaries

At CPEC 1031, we employ experienced qualified intermediaries who are ready to guide you through the ins and outs of your real estate exchange. Section 1031 provides a lot of great benefits to taxpayers, but many are unaware that this option is available! Our qualified intermediaries have two decades of experience facilitating real estate exchanges for clients throughout Minnesota and across the United States. Contact us today at our downtown Minneapolis office to set up a time to chat.

  • Start Your 1031 Exchange: If you have questions about 1031 exchanges, feel free to call me at 612-643-1031.

Defer the tax. Maximize your gain.


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