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Level 2
February 15, 2020
Question

1031 exchange & Delaware Statutory Trust (DST)

  • February 15, 2020
  • 2 replies
  • 34 views

I have a 1031 exchange from 1 rental property to 2 rental properties plus 2 DST's.

I have the 1031 exchange done on Form 8824 and can set up the 2 new rental properties but how do you set up DSTs?  Schedule E? Will my client get K-1s?

Any advice is appreciated.

Thanks, Kathryn

 

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2 replies

Intuit Community Champion
February 15, 2020

I believe you plug the numbers into Schedule E on the investor’s tax return, just like all other rental and commercial property the investor owns. I have done one, but maybe someone will stop in that has

sjrcpa
Level 15
February 15, 2020

You need to review the trust docs. You may find the trusts are just title holding entities and disregarded for tax purposes.

The more I know the more I don’t know.