How DSTs Provide Exceptional Benefits for 1031 Exchange Investors
For real estate owners seeking to defer capital gains taxes while stepping away from active management, Delaware Statutory Trusts (DSTs) offer one of the most effective strategies available. Integrated into a 1031 exchange, DSTs provide a straightforward and IRS-approved pathway to passive, professionally managed real estate, without sacrificing tax benefits.
For many investors looking for stability, predictability, and simplicity, DSTs have become the preferred solution.
Why DSTs Qualify for a 1031 Exchange
DSTs gained widespread adoption after IRS Revenue Ruling 2004-86, which affirmed that DST interests qualify as “like-kind” replacement property for 1031 exchanges.
This ruling allowed investors to:
Move out of hands-on real estate
Transition into passive ownership
Preserve 100% of their tax deferral
It was one of the most significant advancements in modern real estate tax planning.
Top Benefits of DSTs for 1031 Exchange Investors
1. Passive Income Without Landlord Responsibilities
DSTs remove every element of active management.
No tenants.
No maintenance.
No emergencies.
No decision fatigue.
Just steady, predictable income from a professionally run asset.
2. Access to Institutional-Grade Real Estate
DSTs typically feature single-tenant net-lease and other mission-critical properties that individual investors rarely acquire on their own.
These may include:
Industrial logistics centers
Essential-use retail
Corporate headquarters
Long-term leased properties with strong credit tenants
The result is higher stability and a more reliable income profile.
3. Full 1031 Tax Deferral
DSTs allow investors to continue deferring:
Capital gains tax
Depreciation recapture
State taxes
This preserves more net worth, keeping it working and compounding rather than lost to taxes.
4. Professional Asset and Property Management
Investors are no longer responsible for:
Leasing
Renewals
Repairs
Negotiations
Exit decisions
Expert sponsors handle everything.
Investors simply receive distributions and reporting.
5. Estate Planning Simplicity
DST interests are:
clean
divisible
easy for heirs to inherit
easy to administer
This prevents heirs from getting “a second job” managing or selling real estate they don’t want.
Why Investors Choose Medalist DSTs
Medalist Holdings (NASDAQ: MDRR) enhances all of the traditional DST benefits by focusing on stability, credit quality, and thoughtful asset selection.
High-Quality, Net-Leased Assets
Medalist specializes in single-tenant real estate with long-term leases, predictable income streams, and strong tenant credit.
These are ideal for 1031 investors who want low volatility and dependable distributions.
1031-Compliance Integrity
We maintain clean, conservative DST structures designed to maximize tax deferral while reducing complexity.
Institutional-Quality Standards
Our acquisitions emphasize:
essential-use tenants
mission-critical buildings
strategic locations
contractual rent escalations
All curated to support long-term stability.
A Focus on Predictability and Income Security
Medalist DSTs are built for investors who value:
stable income
minimal variability
passive operations
reduced risk
This aligns well with investors transitioning from management-intensive properties into retirement or legacy planning.
Build a More Passive, Stable, and Tax-Efficient Real Estate Future
DSTs do more than defer taxes, they serve as a strategic tool to:
simplify your real estate holdings
secure reliable passive income
diversify your portfolio
reduce management stress
preserve wealth over multiple generations
For many investors, a DST represents the most elegant way to transition from active management into a long-term, stable, low-effort investment.
Explore Your 1031 DST Options With Medalist
Medalist makes tax-deferred investing accessible, transparent, and stable.
If you’re seeking predictable income, a hands-off ownership experience, or a smarter approach to legacy planning, a DST may be the ideal next step.
