Provident 1031 https://provident1031.com Delaware Statutory Trust, 1031 Exchange DST Tue, 09 Jun 2026 06:53:30 +0000 en-US hourly 1 https://wordpress.org/?v=6.9.4 https://provident1031.com/wp-content/uploads/2023/08/cropped-QOZ_1031_exchange_provident_1031_01-32x32.jpg Provident 1031 https://provident1031.com 32 32 Passive Real Estate Investing With A Delaware Statutory Trust https://provident1031.com/passive-real-estate-investing-with-a-dst https://provident1031.com/passive-real-estate-investing-with-a-dst#comments Tue, 09 Jun 2026 06:46:30 +0000 https://provident-new.local/passive-real-estate-investing-with-a-dst/
It is estimated that over 70% of all millionaires in the United States credit real estate as their source of wealth creation.

Human Authored by

Daniel Goodwin

Real estate investors today have options that have not always been available. For example, in 2002, Delaware passed the Delaware Statutory Trust Act, a groundbreaking law.

Revenue Ruling 2004-86 soon followed and allowed DSTs to qualify as “Replacement Property” for the tried-and-true 1031 Exchange (part of our tax code since the 1920s).

One of the primary strategies for creating wealth in real estate has always been to buy properties, build equity, and then sell and move on to larger properties, in many cases using leverage to expand the size and scope of one’s real estate holdings.

1031 Tax-Deferred Exchanges have been investors’ saving grace, allowing them to defer all capital gains as they move into bigger properties. Thus, real estate is one of the greatest wealth-creation tools known to humanity. It is estimated that over 70% of all millionaires in the United States credit real estate as their primary source of wealth creation.

As time goes on, we all age. Sometimes, we reach a place in life where we no longer want to be a landlord, and here’s where DSTs can get very interesting.

Tax Advantages for Passive Real Estate Investing

DSTs can simply mean that real estate investing now offers new tax advantages, making it an attractive option for someone ready to sell but still wants to save/defer capital gains.

Here’s where an investor no longer wants to deal with the headaches and hassles that often come along with income-producing real estate, but can’t stand the thought of writing that big check to the IRS for capital gains … the proverbial “rock and a hard spot.”

Today, investors can sell their property, defer all capital gains through a 1031 exchange, AND use a passively owned DST as their replacement property. In doing so, all capital gains can be deferred, provided the investor works with a Qualified Intermediary and follows all IRS rules and guidelines.

More on that later.

Today, investors can sell their property, defer all capital gains through a 1031 exchange, AND use a passively owned DST as their replacement property.

An Example

IPC Zero Coupon Essential Portfolio DST - Provident 1031 Houston, The Woodlands

Instead of finding another apartment complex or hotel to manage, an investor can now select from fractionalized institutional-grade real estate offerings and effectively “outsource” all of the management, reporting, maintenance, midnight phone calls, hassles, and headaches that landlords often lament. DSTs are for when an investor is ready to transfer control to another party but still wants the tax-favored income that comes with owning income-producing real estate.

DSTs are pass-through entities, and fractional owners can participate in depreciation and amortization. This often means that investors can shelter much of their monthly DST income from taxation, just as they would if they were an owner/manager.

Many DST properties are capitalized with $100,000,000 or more. The offerings are syndicated and institutional. Properties are often medical buildings, Class A multi-family apartment buildings, hotels, senior living facilities, student housing, storage portfolios, retail, and industrial warehouse buildings.

Nationally known tenants are typically companies like Walgreens, Hilton, and Amazon.

Often, many investors might feel better with a large, stable company like Amazon guaranteeing a lease rather than with tenants who have last skipped out on rent, leaving them high and dry. Unfortunately, these higher-grade properties are typically out of reach for smaller real estate investors.

DSTs and all other real estate investing come with risk, and investors should do their homework, perform due diligence and read the Private Placement Memorandum (PPM) before investing any capital.

DST offerings are typically illiquid and would not be considered suitable for a large portion of someone’s wealth. In addition, because DSTs are regulated and are “securities,” you must purchase them from a Registered Investment Advisor and/or a Broker-Dealer Representative who holds a proper securities license, Series 7 or Series 65.

Who can invest in a DST?

An Accredited Investor is an Individual with a net worth in excess of $1,000,000, excluding his or her home, OR an individual with an income over $200,000 over the last two years. If married, the combined income required is $300,000. The income must be “reasonably expected” going forward.

Other Accredited Investors Under Rule 501

  • Certain trusts with assets of at least $5,000,000.
  • A bank, insurance, or certain Registered Investment Companies
  • Certain Employee Benefit Plans and certain tax-exempt charitable organizations, corporations, or partnerships with assets exceeding $5,000,000
  • Certain family trusts
  • Pass-through entities such as LLCs, S Corps, and LLPs

I would stress again the importance of working with a qualified CPA and Qualified Intermediary BEFORE you sell your investment real estate. Working with the Qualified Intermediary (QI) is required, and working alongside the CPA is advised.

Unfortunately, many CPAs in the marketplace are not informed and/or educated about how these real estate transactions work. You can find referrals for QIs and qualified CPAs on our website. You can also speak with an advisor and receive counsel on whether a DST is or isn’t a good idea for you.

What if I am not Accredited but still want to sell or invest in passive real estate?

The DST-accredited qualification requirements are hard and fast, but other options exist for real estate investors. For example, if you are not accredited, you can still sell your real estate.

You can still do a 1031 Exchange, defer your capital gains tax and invest in a property that you manage, or you could sell your real estate and pay any applicable capital gains and then invest in something passive like a Real Estate Investment Trust (REIT).

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]]> https://provident1031.com/passive-real-estate-investing-with-a-dst/feed 2 This Memorial Day, I’m Thinking About What I’ve Never Had to Give https://provident1031.com/this-memorial-day Fri, 22 May 2026 23:00:21 +0000 https://provident1031.com/?p=11421

Memorial Day weekend is here, and I want to share something from my heart.

Human Authored by

Daniel Goodwin

I love my country.

I’ve said that out loud and meant it every time. I built Provident 1031 and Provident Wealth Advisors from the ground up: long days, long years, working through markets that punished mistakes and rewarded patience. Most mornings, I’m still at it before the sun’s up. Building a business in Texas, hiring people, paying them well, helping clients keep more of what they’ve earned, that’s a life I’m proud of.

But here’s what I want to be honest about this weekend.

I have never been asked to put my life on the line for anyone. Not for a stranger. Not for a country. Not for a person I’d never meet who would benefit from what I did.

Memorial Day isn’t Veterans Day. I want to be careful about that. Veterans Day honors everyone who served. The Fourth of July celebrates the country itself. Memorial Day is something narrower and heavier: it’s the day we set aside for the men and women who didn’t come home. The ones who, in Lincoln’s phrase, gave the last full measure of devotion. The ones who never got to build a business, raise a family, or watch a grandkid play baseball on a Saturday morning.

I’ve gotten to do all of that.

I think about Houston National Cemetery sometimes and those rows of white headstones off Veterans Memorial Drive, more than a hundred thousand graves at last count. Each one of them was somebody who decided that something — a country, a unit, a person, an idea — was worth dying for.

Not in the abstract. Actually dying for.

I cannot honestly tell you I know what that takes. I’ve worked hard. I’ve taken financial risks. I’ve stayed up nights worrying about deals that were going sideways. None of that is the same… not even close.

The honest thing to say on Memorial Day is just this: I’m in awe of the people who made that choice, and I’m grateful for them every day I get to do what I love in a country that gave me the chance. That’s it. I don’t have anything more eloquent than that, and I don’t think I should try.

If you’re reading this and you’ve lost someone who served — a spouse, a parent, a son or daughter, a sibling, a friend — please know that whatever I’ve built, whatever any of us in The Woodlands or Houston or anywhere else have built, we built it on top of what your person gave up. We don’t say that often enough.

This Monday I’m going to take some quiet time. Maybe drive out to the cemetery. Maybe just sit on the back porch and think about it.

Whatever you do this weekend — barbecue with the family, head to the lake, take the kids somewhere — take a minute too.

Talk to you next week.
— Dan

]]> Your Stock Portfolio Just Hot Hammered: A Tax-Smart Way to Recover https://provident1031.com/your-stock-portfolio-just-hot-hammered-a-tax-smart-way-to-recover https://provident1031.com/your-stock-portfolio-just-hot-hammered-a-tax-smart-way-to-recover#respond Wed, 20 May 2026 07:32:17 +0000 https://provident1031.com/?p=11339

]]> https://provident1031.com/your-stock-portfolio-just-hot-hammered-a-tax-smart-way-to-recover/feed 0 Five Strategies to Defer Capital Gains in Real Estate Investing https://provident1031.com/five-strategies-to-defer-capital-gains-in-real-estate-investing Fri, 15 May 2026 04:20:35 +0000 https://provident1031.com/?p=7327

Five Strategies to Defer Capital Gains in Real Estate

Five Strategies to Defer Capital Gains in Real Estate Investing

In A Delaware Statutory Trust, Who Owns The Property?

Real estate investors can defer capital gains taxes using five strategic approaches: selling in low-income years to benefit from reduced tax rates, using installment sales to spread gains over multiple tax years, contributing to donor-advised funds for immediate tax deductions, employing 1031 exchanges to defer taxes by reinvesting in similar properties, and investing in qualified opportunity zones for both tax deferral and potential tax-free appreciation. These strategies require careful planning and professional guidance from a team of experts to maximize benefits while navigating complex tax regulations.

Human Authored by

Daniel Goodwin

This type of transaction allows individual investors to sell their existing investment property and use the proceeds to purchase a replacement property and defer capital gains tax — provided that both transactions are executed within a specified time period, generally 180 days with a 45-day identification rule.

Why Should You Invest
In A Delaware Statutory Trust (DST)

Imagine you want to sell your rental property and invest in something that could provide you with reliable income while at the same time eliminating the hassles of negotiating new leases or dealing with unexpected expenses like a new roof or HVAC unit. Selling your real property and placing the proceeds in the bank may sound like a good plan. Still, you may be subject to income tax of up to 20%, net investment income tax of 3.8%, depreciation recapture of 25%, and state income taxes if applicable. You could give away a massive portion of your gains to the IRS without a tax plan or strategy.

In contrast, you may defer tax gains 
if you invest your sale proceeds in a DST

In contrast, you may defer tax gains if you invest your sale proceeds in a DST, which allows you to co-invest with other beneficiaries in one or more institutional-quality DST investment properties. The formation of the Trust is done by DST sponsors (usually LLCs — limited liability companies), who pool the money from smaller investors and invest it in a single, sizable real estate investment.

This structure offers numerous benefits, such as acquiring passive ownership in institutional-quality assets, minimum investments, and no renting/asset management responsibilities. It also helps diversify your investment portfolio and removes managerial hassles associated with property management since a DST sponsor is managing the property. Moreover, in today’s tight real estate market, a DST can provide a more reliable closing as DSTs can be more readily available.

Keep in mind, DSTs are offered
only to “accredited investors,”

Keep in mind DSTs are offered only to “accredited investors,” which generally means an individual or entity with a net worth apart from one’s primary residence in excess of $1,000,000, or an income of $200,000 if single or $300,000 for a married couple. In addition, certain exclusions apply to the IRS rules. Your DST firm associate will make sure you meet the IRS qualifications.
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In A Delaware Statutory Trust Who Owns The Property? - by Daniel Goodwin - Provident 1031 The Woodlands - Houston
DSTs are structured as a passive investment in which several DST investors hold an undivided, fractional beneficial interest in the holdings of the Delaware Statutory Trust. This means that you do not actually own a specific property, such as one apartment in an apartment building, but rather a fractional ownership in the property, which corresponds to your share of the Trust. These sometimes are referred to as “beneficial interests.”

For example, if you have a 13% fractional interest, you own 13% of the apartment building and, by extension, 13% of each individual apartment unit. Therefore, you are also entitled to 13% of the net profit generated by the rental property.

Should I Invest in a DST?

There’s a reason why accredited investors are moving in droves towards investing in Delaware Statutory Trusts. These include tax benefits, passive income, elimination of personal liability, and the ability to manage cash flow and transfer of wealth. In addition, DST offerings are an optimal investment vehicle for obtaining access to rentable multifamily and commercial real estate at a fraction of the price.

If you are interested in investing in Delaware Statutory Trusts or learning more, contact Provident 1031, where you can view Master The 1031 Exchange Masterclass video learning series on DSTs, 1031 Exchanges, and other investment properties.
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]]> Don’t Defer Retirement if You’re a Landlord, Defer Taxes Instead https://provident1031.com/dont-defer-retirement-if-youre-a-landlord-defer-taxes-instead https://provident1031.com/dont-defer-retirement-if-youre-a-landlord-defer-taxes-instead#respond Mon, 13 Apr 2026 15:19:50 +0000 https://devprovident.wpenginepowered.com/?p=10943

A millionaire couple spent 30 years building a rental property empire—then nearly handed the IRS over a million dollars just to retire. Daniel Goodwin tells their story and reveals the exit strategy most exhausted landlords never hear about: using a 1031 exchange to invest in Delaware Statutory Trusts and defer all capital gains taxes while transitioning from hands-on management to passive monthly income.

With over 11,000 Americans turning 65 every day, this article is a must-read for any landlord who’s ready to stop replacing roofs and start living.

]]> https://provident1031.com/dont-defer-retirement-if-youre-a-landlord-defer-taxes-instead/feed 0 Tax Advantages of Oil and Gas Investments: What You Need To Know https://provident1031.com/tax-advantages-of-oil-and-gas-investments-what-you-need-to-know https://provident1031.com/tax-advantages-of-oil-and-gas-investments-what-you-need-to-know#respond Mon, 13 Apr 2026 15:11:47 +0000 https://devprovident.wpenginepowered.com/?p=10939

While most tax shelters vanished after the 1986 Tax Reform Act, oil and gas investments quietly kept theirs—and they’re remarkably powerful. Daniel Goodwin reveals how accredited investors in small producer projects can deduct up to 100% of intangible drilling costs in year one, shelter 15% of gross income through depletion allowances, and offset active income with drilling losses. Combined with the qualified business income deduction, after-tax yields can increase dramatically. Even unsuccessful wells offer near-complete write-offs. This article unpacks every advantage available today.

]]> https://provident1031.com/tax-advantages-of-oil-and-gas-investments-what-you-need-to-know/feed 0 How A Phone Call Saved My Friend Over $50,000 Using A 1031 Exchange https://provident1031.com/1031-exchange-example Fri, 20 Mar 2026 05:47:00 +0000 https://provident1031.com/?p=6641
Sometimes it’s better to be lucky than good, and the timing of a phone call from a friend trying to navigate 1031 exchange capital gains taxes couldn’t have been luckier.

Human Authored by

Daniel Goodwin

A 1031 Exchange Example

My buddy lives in upstate New York, and about eight years ago, he bought a rental house in the Adirondacks as an investment property. He paid $200,000 for it, and it’s provided him with a steady stream of income since he’s owned it. But it comes with the usual landlord’s share of headaches, too, especially given the number of renters that he’s dealt with for a vacation rental. So when a local real estate agent put out a feeler and suggested he could get $375,000 or so for it in today’s market, he figured a near-double over an eight-year period was a nice return, and why get greedy? He started to put the wheels in motion to sell his rental home. 

But first, he called me. 

And I asked him one simple question: Do you need the money for some reason?

He laughed and reminded me that there’s never a bad time to put $375,000 in the bank, but no, there was no pressing need. 

Well, I told him, you can certainly complete the sale. Pay the Federal capital gains tax on the $175,000 gain (in his tax bracket, it would have been the max 20%, or $35,000). Pay the New York State capital gains tax (another $19,075). And walk away with the $320,000 or so that’s left. 

On the other hand, he was also free to upgrade to a larger, more profitable rental property in the same part of the state (which seldom goes unrented) by locating a place with a $375,000 price tag, completing a 1031 exchange, and potentially deferring the almost $55,000 in capital gains taxes indefinitely. The better property would be accompanied by a better stream of rental income, some of which he could use to pay a property manager if he was really all that tired of landlord duties. The substantial increase in rental income would more than cover that expense, boosting not only his checkbook but also his quality of life! 

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As you can imagine, it didn’t take much convincing, and my friend is better off for it. 

The moral of the story couldn’t be simpler here: make sure you’ve exhausted all your possibilities before you incur a hefty tax bill, especially if you live in a high-tax state like New York. Unless you’re facing a screaming need to cash out of a business property, there are usually some good alternatives to enriching your Uncle Sam.

Don’t ever hesitate to give us a call, so that we can talk over some of those possibilities and keep your money where it belongs: in your pockets! 

How To Build Tax-Free Wealth Using A Delaware Statutory Trust = by Daniel Goodwin - Available at Amazon and Goodreads
]]> Considering a 1031 Exchange? The Rules You Need to Know https://provident1031.com/considering-a-1031-exchange-the-rules-you-need-to-know https://provident1031.com/considering-a-1031-exchange-the-rules-you-need-to-know#respond Fri, 06 Mar 2026 19:54:00 +0000 https://devprovident.wpenginepowered.com/?p=10927

Selling investment property without a plan could cost you hundreds of thousands in capital gains taxes. Daniel Goodwin breaks down the essential 1031 exchange rules every real estate investor must know—from strict 45- and 180-day deadlines to like-kind requirements and the critical role of a qualified intermediary. Through a detailed example, he shows how one investor facing a $3 million sale could save over $500,000 in taxes. Plus, discover how Delaware Statutory Trusts and the step-up in basis at death can make tax deferrals permanent.

]]> https://provident1031.com/considering-a-1031-exchange-the-rules-you-need-to-know/feed 0 Time Is Running Out on 2026’s Best-Kept Tax Secret https://provident1031.com/time-is-running-out-on-2026s-best-kept-tax-secret https://provident1031.com/time-is-running-out-on-2026s-best-kept-tax-secret#respond Thu, 05 Feb 2026 19:27:00 +0000 https://devprovident.wpenginepowered.com/?p=10905

Most investors know Opportunity Zones defer capital gains taxes—but few realize a lesser-known rural provision triples the standard step-up in basis. Daniel Goodwin reveals how qualified rural opportunity funds offer a 30% basis step-up, versus the standard 10%, potentially excluding hundreds of thousands of dollars from taxation. But the December 31, 2026 deadline is absolute. This article delivers a month-by-month execution calendar—from first-quarter assessment through the final sprint—ensuring you capture every available benefit before this once-in-a-generation window closes permanently.

]]> https://provident1031.com/time-is-running-out-on-2026s-best-kept-tax-secret/feed 0 6 Risks of Delaware Statutory Trusts in 1031 Exchanges https://provident1031.com/6-risks-of-delaware-statutory-trusts-in-1031-exchanges-2 https://provident1031.com/6-risks-of-delaware-statutory-trusts-in-1031-exchanges-2#respond Tue, 27 Jan 2026 19:12:00 +0000 https://devprovident.wpenginepowered.com/?p=10896

Delaware Statutory Trusts offer real estate investors powerful tax deferral through 1031 exchanges—but they’re not without risk. From market volatility and illiquidity to hidden fees and strict IRS structural rules, DST investors face challenges that demand careful navigation.

Daniel Goodwin breaks down six key risks every investor should understand before committing capital, including the infamous “seven deadly sins” that limit a trust’s flexibility. The good news? Each risk has a strategic countermeasure. This article equips you with the knowledge to invest with confidence—not blind faith.

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