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Course Details

Course Information
  • smart_display Format

    On-Demand

  • signal_cellular_alt Difficulty Level

    Intermediate

  • work Practice Area

    Real Property - Finance

Date & Time
  • event Date

    Tuesday, July 23, 2024

  • schedule Time

    1:00 p.m. ET./10:00 a.m. PT

  • timer Program Length

    90 minutes

Credit Information

  • This 90-minute webinar is eligible in most states for 1.5 CLE credits.

$347.00
CLE
ALL

This CLE webinar will provide real estate finance and tax counsel with a review of the advantages and risks of Delaware statutory trusts (DSTs) as a structure for real estate investments. The panel will offer approaches for structuring and financing DSTs and discuss the key tax issues associated with DSTs, including the "seven deadly sins," which can jeopardize 1031 tax treatment.

Faculty

Edward J. Hannon
Shareholder
Polsinelli

Mr. Hannon, attorney and certified public accountant, concentrates his practice on providing advice and counsel to clients on the use of various tax-savings structures in a variety of real estate matters. He has worked with clients in providing advice on tax-driven structures involving real estate located throughout the United States. His practice ranges from joint ventures for real estate development projects to projects that include investment in U.S. real estate by foreign investors and tax-exempt entities. Mr. Hannon has an in-depth understanding of regulations, including Section 1031 of the Internal Revenue Code and Delaware Statutory Trusts (DST) and tenant common structures to facilitate the like-kind exchange process. He is co-leader of Polsinelli’s DST working group and has advised various real estate companies on the use of the Delaware Statutory Trusts structure to raise co-investment capital.

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Steven R. Meier
Partner
Seyfarth Shaw LLP

Mr. Meier's diverse tax practice involves all aspects of federal taxation. He regularly advises clients on the design, implementation, disposition and workout of real estate investment programs, including real estate investment funds and complex like-kind exchange programs. He acts as lead tax counsel in domestic and cross-border transactions, and advises early-stage businesses on tax, equity compensation and related matters.

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Description

DSTs have become the investment vehicle of choice for syndicated IRC Section 1031 exchanges. DSTs can be used with many different classes of real estate assets, accommodate a wide range of financing, and be structured to have multiple assets.

Nevertheless, the qualification of DST interests as replacement property for purposes of IRC Section 1031 is a complex subject, and DSTs that are not structured correctly may be a trap for the unwary investor.

Listen as our authoritative panel of real estate and tax practitioners reviews the opportunities and pitfalls of using DSTs in real estate investments. The group will discuss structuring and financing the DST with particular attention to the tax issues and ramifications.

Outline

  1. Trends in the use of DSTs for real estate investments
  2. Structuring the DST
  3. Assets for DST programs
  4. Financing DST investments
  5. DST governance
  6. Workouts of DST programs
  7. Nontraditional uses for DSTs: REITs/funds vs. direct investment
  8. Recent regulatory updates and guidance

Benefits

The panel will review these and other key issues:

  • What are the trends in using DSTs as real estate investment vehicles?
  • What opportunities exist for using DSTs, and what are some of the legal pitfalls?
  • What types of investment properties are DSTs well-suited for in an investment structure?
  • What challenges do DSTs present for lenders, and how should these problems be addressed?