Manhattan 1031 Lawyer Natalia Sishodia Explains The Benefits Of A 1031 Exchange Delaware Statutory Trust

Manhattan 1031 lawyer Natalia Sishodia ( releases a new blog post where she explains the benefits of a 1031 Exchange Delaware Statutory Trust (DST). The lawyer mentions that in New York, real estate investment comes in many forms in order to give investors a variety of options. Since there are many tax considerations in any real estate investment, this is where a 1031 exchange comes in.

According to the Manhattan 1031 lawyer, “In the world of real estate, a 1031 exchange refers to a swap/exchange of property that is held specifically for business or investment purposes. Per IRS code section 1031, an investor can swap one investment property for another like-kind (tax-deferred transaction) investment property to avoid paying taxes on capital gains on the sale of the property.”

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The lawyer explains that there are no limits to how frequently an investor may be able to do a 1031 exchange. However, meeting the IRS requirements may be difficult. This is why investors turn to the Delaware Statutory Trust (DST) when doing 1031 exchanges.

In the blog post, attorney Sishodia discusses that a DST is a legal entity that is recognized as a trust that is established to conduct business. DST is a term used to describe a similar type of entity in any state. It is also termed “Unincorporated Business Trust”.

The real estate lawyer also explains that the IRS has ruled that a taxpayer may be able to exchange real property for an interest in the DST without recognition of gain or loss under § 1031 if the other requirements of § 1031 are satisfied. Since the IRS considers DST as real estate, then a DST can be a “replacement” property for a 1031 exchange.

Additionally, attorney Sishodia adds that for someone to benefit from DSTs, an investor can sell the original property for interest and become a fractional investor alongside other owners or investors.

Furthermore, the lawyer says that having a fractional ownership interest in a DST may be able to provide investors with a diverse portfolio and a passive income-producing property that will allow them to defer taxes on capital gains for the original property’s sale.

Lastly, the lawyer emphasizes that seeking the guidance of a skilled real estate attorney may be able to help one understand what their options are. An experienced real estate lawyer may be able to explain IRS rules and regulations to the client and may be able to help them navigate through tax laws and simplify the process for them.

About Sishodia PLLC

Sishodia PLLC’s team of professional New York real estate lawyers pride themselves on their ability to navigate complex investment laws and intricacies in order to offer the most comprehensive advice and guidance possible to our international clients. The lawyers at Sishodia PLLC take time to fully understand each client’s unique goals and circumstances, minimizing potential risks and issues. Call them today at (833) 616-4646 for a consultation.


For more information about Sishodia PLLC, contact the company here:

Sishodia PLLC
Natalia Sishodia
600 Third Avenue 2nd Floor, New York, NY 10016, United States