Using a Delaware Statutory Trust in a 1031 Exchange

Since 1921, section 1031 exchanges have been one of the most efficient tax deferral and wealth transfer vehicles available for real property investors. In a 1031 exchange, a property owner exits from an investment property and then replaces it with a “like-kind” asset, the benefit being the deferral of capital gains tax from the relinquished property. Notably, Delaware Statutory Trusts (DST) serve as a vehicle that may qualify for a 1031 exchange.