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1031 exchange & Delaware Statutory Trust (DST)

Level 1

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


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2 Replies 2
Level 11
Level 11

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

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Level 15

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

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