How DSTs Provide Exceptional Benefits for 1031 Exchange Investors

For investors seeking to defer capital gains taxes while enjoying hassle-free real estate ownership, Delaware Statutory Trusts (DSTs) offer unparalleled benefits. Within the framework of a 1031 exchange, DSTs enable a seamless move from active property management to passive, professionally managed real estate.

What Makes DSTs Qualify for a 1031 Exchange?

Under IRS Revenue Ruling 2004-86, DSTs are officially recognized as "like-kind" replacement properties. This means investors can exchange relinquished real estate for a beneficial interest in a DST while retaining the full tax deferral benefits granted under Section 1031 of the Internal Revenue Code.

This ruling revolutionized real estate investing. For the first time, it provided clear guidance allowing investors to transition into high-quality, passive real estate ownership while preserving their tax advantages.

Benefits of DSTs for 1031 Investors

DSTs adhere to strict IRS guidelines, ensuring compliance while maximizing benefits for investors. Key advantages include:

• Passive Income, Zero Hassle: Say goodbye to landlord headaches. With DSTs, you receive regular, predictable income without needing to handle tenant calls or maintenance issues.

• Institutional-Grade Properties: DSTs typically involve high-quality, single-property investments or small, diversified portfolios. These properties are often leased to creditworthy tenants, ensuring stability and reliability.

• Full Tax Deferral: Structured explicitly for 1031 exchanges, DSTs allow for uninterrupted deferral of capital gains taxes, keeping your investments working hard for your wealth-building goals.

• Risk Mitigation Through Sponsorship Expertise: DST sponsors, not individual investors, manage operations. These experts handle leasing, renewals, and property sales, minimizing the risks of poor decision-making.

Simplified and Strategic Real Estate with Medalist

Medalist Holdings (NASDAQ: MDRR) takes DST investing to the next level. We specialize in providing stable, secure opportunities designed to align with your financial goals. Here’s why Medalist DSTs stand out from the rest:

• Triple-Net Lease Focus: Our DSTs revolve around single-tenant, triple-net lease properties, pre-selected for their reliability and security. Long-term leases with high-credit tenants mean consistent returns for you.

• Maximized Tax Efficiency: Medalist adheres to clean, 1031-compliant structures, eliminating complexity for peace of mind.

• Passive Income with Institutional-Quality Assets: Enjoy the freedom of hands-off investing while gaining exposure to institutional-grade properties typically unavailable to individual investors.

• Built for Stability and Predictability: Access an investment that prioritizes financial security through meticulous property curation and professional management.

Take the Next Step in Building Your Real Estate Legacy

DSTs don’t just provide tax deferral; they create opportunities for sustained wealth and strategic portfolio diversification. Whether you're looking to simplify your real estate holdings, secure predictable income, or combine tax-advantaged strategies with low-effort management, a DST could be your perfect match.

Explore Your Options Today

At Medalist, we make tax-deferred real estate investing simple and accessible. Start your journey to stress-free, legacy-building wealth today.