Level 11
05-03-2024
07:19 AM
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1. Since you're investing the proceeds of the 1031 in multiple DSTs, I'd split the carryover basis by % of investment.....
2. Find out specifically what year end documentation you'll be receiving from the trustee(s). Get a sample if you can.
3. Id file a separate Sch E for each DST using their year end statements, splitting and depreciating the carryover basis among the DST's
DST 1031 exchange investors do not receive a K-1 or 1099 at the end of the year for tax purposes. At the end of the year you will receive an operating statement (sometimes referred to as a substitute 1099). This will show your pro-rata portion of the DST properties rental income and expenses.
If at first you don’t succeed…..find a workaround