Portfolio Diversification
Greater Cash Flow
Relocation of Investment
Stepped-Up Basis for Heirs
Appreciation Leverage
45 Day ID Period
DSTs eliminate much of the hassle of the identification process by offering investors numerous properties that can be identified immediately.
Excess Boot
When a replacement property is lesser in value than the previously sold property, the remaining money must be taxed. This leftover money is known as excess boot. With a DST you can invest down to the penny, ensuring that 100% of your exchange funds are invested.
Backup Insurance
With a DST the property is already purchased, thus removing any closing risk. This makes a DST a great potential backup in your identification process. Some investors choose to identify a DST as “backup insurance” in the event their other identified properties do not close.