To defer capital gains tax on real estate you can take advantage of different investment structures, like a Delaware Statutory Trust. Investing in a DST through a 1031 exchange allows you to avoid capital gains tax by selling your current property and acquiring qualified shares of the Delaware Statutory Trust. These shares provide passive monthly income and require no hands-on management.

In this short, easy-to-understand video, we cover:

What are capital gains?

What is considered long term capital gains?

How do you calculate your capital gain?

What is the tax rate on a long term capital gain?

How can you use a Delaware Statutory Trust to defer capital gains taxes?

For investors who want to learn how to avoid capital gains taxes when selling real estate, understanding how to utilize a DST as part of a 1031 exchange is crucial to determining the best path forward for avoiding capital gains taxes.

Still have questions? Let us know in the comments section.

Watch more informational videos:

Delaware Statutory Trust Explained (In Under 1 Minute)
https://www.youtube.com/watch?v=otOnd43f1tE

Delaware Statutory Trust 1031: The Basics (In Under 2 Minutes)
https://www.youtube.com/watch?v=uGcbV8tV5o4

Learn more at our website:

What Are the 1031 Exchange Property Identification Rules?
https://www.1031gateway.com/1031-exchange-rules/property-identification-rules/property-identification/

1031 Exchange Basics: A Simple Introduction
https://www.1031gateway.com/1031-exchange-rules/1031-exchange-basics/introduction/

What Do Investors Need to Know About Qualified Intermediaries?
https://www.1031gateway.com/1031-exchange-rules/1031-exchange-basics/qualified-intermediary/