How Californians Can Utilize DSTs To Avoid Capital Gains Tax And Diversify Their Portfolios

By Kevin Olds | May 3, 2022


Edward Fernandez, founder and CEO of 1031 Crowdfunding, contributes an article to the California Business Journal on why Californians should consider DSTs as an investment in order to alleviate the tax burden. Fernadez explains that DSTs would be especially beneficial for Californians and individuals in high tax states because it provides a cheaper entrance into real estate. “DSTs in combination with 1031 exchanges can provide accredited investors with a tax deferral and real estate exposure in their portfolios. Because DSTs are formulated like a trust, they offer liability protection similar to that of a limited liability company or partnership, allowing for the greatest investor protection,” says Fernandez.

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This material does not constitute an offer to sell or a solicitation of an offer to buy any security. An offer can only be made by a prospectus that contains more complete information on risks, management fees and other expenses. This literature must be accompanied by, and read in conjunction with, a prospectus or private placement memorandum to fully understand the implications and risks of the offering of securities to which it relates. As with all investing, investing in private placements is speculative in nature and involves a degree of risk, including loss of your principal. Past performance is not necessarily indicative of future results and forward-looking statements and projections are not guaranteed to achieve the results described and your actual returns may vary significantly. Investments in private placements are illiquid in nature and there may be no secondary market or ability to sell the investment should the need for liquidity arise. This material should not be construed as tax advice and you should consult with your tax advisor as individual tax situations will vary. Securities offered through Capulent, LLC Member FINRA, SIPC.

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