After TaxTax Playbook

Tax Playbook · Investment tax wins

DSTs: 1031 without the landlord hassle

Advanced

You sell your rental and buy a share of a DST instead of another building, and the IRS counts your share as real estate, so the tax on your profit waits until later. Minimums often start around $100,000. You must pick the DST within 45 days of selling and finish the deal within 180 days. Example: sell a rental with a $150,000 profit and you can keep all $150,000 invested instead of paying tax now.

Good for: Rental owners who want out of landlord duties but want to keep the 1031 tax break.

Learn the basics

Recent articles & guides

On this site

Related strategies

1031 exchangesSell a rental property and use the money to buy another one, and the tax on your profit waits — potentially fo…Municipal bondsWhen cities and states borrow money, the interest they pay you is free from federal tax (and often state tax t…I BondsI Bonds are U.S. government savings bonds that keep up with inflation, so your money doesn't lose buying power…Tax-loss harvestingIf one investment lost money, sell it and use the loss to cancel out tax on an investment that made money — do…Direct indexing & tax-managed SMAsInstead of buying one fund holding 500 stocks, you buy the 500 stocks yourself. Then whenever some dip, you se…Asset locationIt's not just what you own, it's where you keep it. Bonds (taxed heavily) go in retirement accounts; stocks (t…

Browse all 97 strategies in the interactive playbook

Educational summary, not tax advice. Limits and rules change — confirm current law with your tax adviser.