CalculateRealEstateROI

Taxes

When does a DST make sense as a 1031 vehicle?

When you're done operating actively but unwilling to pay tax on sale.

Reviewed by Keiron Brown, Founder & Editor, CalculateRealEstateROI · Educational estimates only — not investment, financial, tax, or legal advice

Direct answer

When you're done operating actively but unwilling to pay tax on sale.

Expanded explanation

DSTs are passive: no management, no decisions, no calls. Returns lower than direct, but truly passive.

Examples

  • Aging investor 1031 from 12 SFRs into 3 institutional DST positions.

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