10Y TREASURY · 4.31% · +3 BPS

DELAWARE STATUTORY TRUST RESEARCH

Understand DSTs before you talk to a broker-dealer.

Independent research for accredited investors weighing a Delaware Statutory Trust as 1031 replacement property. Sponsor structures, holding periods, illiquidity, and the cashflow assumptions you should examine before a registered rep walks you through an offering.

DST CASHFLOW ESTIMATOR · LIVE

Sale price$1,200,000
Original basis$400,000
Improvements$50,000
Depreciation taken$80,000
Closing costs$35,000
Adjusted basis$370,000
Realized gain$795,000
Recaptured depreciation tax (25%)$20,000
Federal LTCG (20%)$143,000
NIIT (3.8%)$30,210
CA state tax (~12.3%)$97,785

ESTIMATED TAX LIABILITY

$0

Effective rate: ~36.6% on a $795k realized gain. vs $0 if you do a 1031 →

See full breakdown →

Illustrative. Assumes CA resident, 20% federal LTCG, 25% recapture, 3.8% NIIT. Real numbers depend on your state, income, and prior depreciation.

If you do a 1031 instead, this entire $290k becomes deferred.

THE 1031 DST HUB WEEKLY · TUESDAYS

DST research, sponsor structures, and a single tax mechanic. Tuesdays.

One Tuesday email. DST sponsor due-diligence notes, a tax mechanic explained in plain terms, and notable replacement-property research. No tracking pixels. One-click unsubscribe.

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