1031 Exchange with DST's Delaware Statutory Trusts as Replacement Property

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Tomorrow I will be setting up the DST's that I purchased from the proceeds of the sale of rental property on depreciation schedules. I hope it will not be too difficult. I understand you have to set up assets for each DST, and take the information provided by the sponsors (I hope it is adequate) re the buildings and land. All are commercial rental properties and I don't think they have any personal property and give you no further breakdown other than building and land.

If any of you have experience in setting these up your input would be appreciated.

In retrospect, I would have bought fewer of them, and some will require state income tax returns. I bought them late in the year so I had no income until 2019, however I think I have to set up the depreciation schedules on the 2018 return though there will probably be no depreciation for 2018 as they were purchased after 12/15. Yes, I will have to attach a summary of how I allocate the basis from the 8824 which is ridiculously low due to previous deferrals.

Anonymous_

Level 15

Frankly, I strongly suspect you are exiting the do-it-yourself arena and will require professional tax guidance.

Regardless, TurboTax does not facilitate setting up (and tracking) multiple replacement properties and, in fact, doing so is officially not supported.

See http://www.winthcowealthmanagement.com/delaware-statutory-trust-pros-and-cons

kmenace45Author

Level 3

I believe I can do the allocation of value myself and just set each one up like a new rental property. I don't know why I couldn't but I'll let you know if it doesn't work.

Most CPA's haven't even heard of DST's , at least the ones I've asked haven't so you have to look around to get assistance. I was hoping someone on here had DST's on their tax returns but most with DST's probably aren't doing their own tax returns on turbo tax. Thanks for the input.

kmbayarea

Level 3

I have the same question that you had posted. I sold my rental property last year and invested in four like kind DST investments in multiple states using a QI. How did you end up completing your tax return for last year? I have spent an inordinate amount time on TurboTax Premier to figure the right way to input the transactions. I am ready to give up and hire a local CPA who is familiar with the DST investments.