Re: 1031 exchange & Delaware Statutory Trust (DST)

taxseasoncpa · ‎02-15-2020

I have a 1031 exchange from 1 rental property to 2 rental properties plus 2 DST's.

I have the 1031 exchange done on Form 8824 and can set up the 2 new rental properties but how do you set up DSTs? Schedule E? Will my client get K-1s?

Any advice is appreciated.

Thanks, Kathryn

Terry53029 · ‎02-15-2020

I believe you plug the numbers into Schedule E on the investor’s tax return, just like all other rental and commercial property the investor owns. I have done one, but maybe someone will stop in that has

sjrcpa · ‎02-15-2020

You need to review the trust docs. You may find the trusts are just title holding entities and disregarded for tax purposes.

Ex-AllStar