Your Property
Enter estimated depreciation allowed or allowable. For this simplified estimate, adjusted basis starts with basis before depreciation minus this amount; other tax-basis adjustments may apply.
Tax Rates & DST Assumptions
DST Assumptions
Use a projected rate from a specific offering, if available. Distributions are not guaranteed.
Scenario A: Sell & Realize Gain
Tax Breakdown
Scenario B: Potential 1031 Exchange into DST
Potential Tax Deferral Estimate
Projected Income Comparison (10 Years)
The Bottom Line
Illustrative comparison over 10 years, based on the assumptions entered.
The model estimates a $173,741 difference in cumulative distributions and $315,895 in potential tax deferral if the exchange qualifies. The illustrative distribution yield to match the modeled totals is 8.4%. These are simplified estimates, not guaranteed savings, returns, or an after-tax forecast.
Let's run your numbers togetherWhat is a DST?
A Delaware Statutory Trust (DST) may hold investment real estate for multiple beneficial owners. Under IRS Revenue Ruling 2004-86, an interest in certain DSTs may qualify as replacement real property in a Section 1031 exchange if applicable requirements are met. Eligibility is not automatic. A qualifying exchange generally defers recognition of gain rather than eliminating tax; DST interests are typically illiquid and offer limited investor control.
Key Considerations
1031 Exchange Deadlines
Replacement property generally must be identified within 45 days after transfer. The exchange generally must be completed by the earlier of 180 days after transfer or the tax-return due date, including extensions. Strict procedures apply; confirm your deadline with qualified tax professionals.
DST Liquidity
DST interests are illiquid — there is no public market for them. Hold periods typically range from 5–10 years. You cannot easily sell your interest before the trust disposes of the underlying property.
Mortgage Boot
Value, equity, debt, cash received, and other transaction details can affect whether gain is recognized. Differences in replacement debt may have tax consequences; consult a qualified tax professional.
Estate and Basis Treatment
The tax and basis treatment of inherited property depends on applicable law and individual facts. Do not assume deferred gain will be eliminated; consult estate and tax professionals.
Calculator Questions
What is a Delaware Statutory Trust (DST)?
A Delaware Statutory Trust (DST) is a legal entity that may hold investment real estate for multiple beneficial owners. Under IRS Revenue Ruling 2004-86, an interest in certain DSTs may qualify as replacement real property in a Section 1031 exchange if the trust and transaction meet applicable requirements. Eligibility is not automatic. DST interests are generally illiquid and offer limited investor control.
What are the 45-day and 180-day 1031 exchange deadlines?
Replacement property generally must be identified in writing within 45 days after transfer of the relinquished property. An exchange generally must be completed by the earlier of 180 days after transfer or the due date of the taxpayer's return, including extensions. A qualified intermediary and strict procedures are generally required; confirm the rules for your transaction with a qualified tax professional.
How should I interpret this calculator's tax estimate?
The tool applies the tax rates and property assumptions you enter to produce a rough illustration. Actual tax depends on transaction details, tax basis, depreciation, federal and state rules, and individual circumstances. A qualifying Section 1031 exchange generally defers recognition of gain rather than eliminating tax; a DST or exchange does not guarantee a particular tax outcome.
How do I enter adjusted basis in the DST 1031 calculator?
Enter tax basis before depreciation in the basis field and accumulated depreciation in its separate field. The calculator uses those entries for a simplified estimate; adjusted basis generally reflects basis reduced by depreciation allowed or allowable, and other tax-basis adjustments may apply. Use tax records and consult a qualified tax professional to determine actual adjusted basis and gain.
For general exchange rules, see the IRS guide to like-kind exchanges of real estate. This resource does not determine whether a specific property or transaction qualifies.
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