Questions Regarding DSTs and 1031

[Jason Mak]

Hello All - have a few quick questions about DSTs for 1031 exchanges.

1. Does the specific DST property or DST company need to be identified within the 45 days on the replacement property form?

2. Can you exchange out of a DST? I.E. buy a DST. If the DST sells the property (or if you find a buyer for your fractional share), can you exchange that fractional share to a regular property? (I.E. can you exchange into a DST and then back into a regular property)

Thanks

Jason

[Dave Foster]

@Jason Mak,

1. Yes, the DST is a replacement property in your 1031. and it must be identified on your 45 day list.

2. Yes, again, the DST acts exactly like any other replacement investment property. When the DST matures and sells you can 1031 your % into another DST, or back into regular bricks and mortar real estate. Many like them as a placemarker as a real estate transitions and settles down. They buy the DST and then when it is sold they go back into a better market for regular properties.