LexisNexis®
University

Delaware Statutory Trusts: Breaking Down the Tax and Investment Benefits

Content Provider
American Law Institute CLE
Product
CLE
Run Time
91 Minutes
Recording Date
11/08/2022
Presenter(s)
Edward J Hannon, Thomas (Tom) F. Kaufman
Learning Method
On-Demand Training
Practice Area
Real Estate, Taxation
Persona
CLE OnDemand

Price $259.00

Add To CartCheckout

Description

Commercial real estate investment vehicles like 1031 exchanges and now Delaware Statutory Trusts (DSTs) are gaining more attention and increasing in popularity due to the greater income potential, competitive risk-adjusted returns, and the significant tax benefits they offer. While many real estate practitioners are well-versed on 1031 exchanges, many remain unfamiliar with DSTs - an investment vehicle that has existed for a while but became more attractive after the 2008-2009 financial crisis. DSTs, which are used for passive ownership in institutional-quality assets at a comparatively low minimum investment cost, offer great investment potential for investment clients. However, they are complex vehicles and transactions to execute, posing several pitfalls and traps for the unwary. Take this course so you can step over these transaction landmines! Taught by three nationally recognized practitioners well-versed in real estate investment and tax matters, this course will break down DST fundamentals so that you and your client are well-informed and prepared to embark on DST investment deals. Over the course of 90-minutes, you will analyze these important deal considerations: DST requirements from a tax perspective and why these work in a 1031, understanding Revenue Ruling 2004-86 and additional restrictions beyond the “seven deadly sins” Understanding how DSTs differ from tenancy-in common (TICs) structures: Benefits and disadvantages in using DSTs versus TICs The asset types that are ideally suited for the use of DSTs: The institutional-grade commercial properties for which DSTs may be the ideal structure to acquire, hold, finance and sell. How to structure and govern a DST: Organizational, management, and control considerations Financing a DST and workout considerations: Limitations on the authority of DST trustees, special considerations if a master lease structure is used and avoiding “tax traps” that could impair treatment as real estate for purposes of Code Section” Solutions and other options when things go wrong: Practical deal pressure points, strategic considerations, and unique issues

Literature

State Status Total Credits Type Of Credit Approved Thru
AlabamaApproved1.50General12/31/2024
AlaskaApproved1.50GeneralOn-going
ArizonaApproved1.50GeneralOn-going
ArkansasApproved1.50GeneralOn-going
CaliforniaApproved1.50Participatory12/31/2027
ColoradoApproved2.00General12/31/2025
ConnecticutApproved1.50GeneralOn-going
DelawareApproved1.50General11/07/2024
FloridaApproved2.00General07/31/2024
GeorgiaApproved1.50General12/31/2024
HawaiiApproved1.50General12/27/2024
IdahoApproved1.50General11/08/2027
IllinoisApproved1.50General01/09/2025
LouisianaApproved1.50General01/05/2025
MaineApproved1.50General03/05/2025
MinnesotaApproved1.50General02/09/2025
MississippiPending State Response0.00
MissouriApproved1.80GeneralOn-going
MontanaApproved1.50General11/07/2025
NebraskaApproved1.51General11/07/2024
NevadaApproved1.50General12/31/2026
New HampshireApproved1.50General11/07/2025
New JerseyApproved1.50GeneralOn-going
New MexicoApproved1.50General11/07/2027
New YorkApproved1.50SkillsOn-going
North DakotaApproved1.50General11/07/2025
OhioApproved1.50General12/31/2024
OregonApproved1.50General11/07/2025
PennsylvaniaApproved1.50General01/05/2025
Rhode IslandApproved1.50General06/30/2024
South CarolinaApproved1.52General12/31/2024
UtahApproved1.50General12/31/2024
VermontApproved1.50GeneralOn-going
VirginiaApproved1.50General10/31/2024
WashingtonApproved1.50General11/07/2027
West VirginiaApproved1.82GeneralOn-going
WisconsinApproved1.50GeneralOn-going
WyomingApproved1.50General01/05/2025

Speakers