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DST Investments - Asset or Investment/ Brokerage Account

Jason C3

I have done a 1031 exchange into a few DST and was wondering how to add the DSTs into Quicken. Most involve multiple rental properties, but a few involve other asset classes. Do I enter in as an asset or as an investment - brokerage? As a DST they involve ownership percentages, equity, and debt. This is less for tax purposes than a way to keep track of all my investments.

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Accepted answers

Frankx

Hi @Jason C3

So, DST's or Delaware Statutory Trusts, are effectively limited partnerships, where the trust acts for the benefit of participants in the operation of typically high-end commercial real estate properties.

As such the closest thing to this type of investment would be a limited partnership interest, especially since you are not concerned with tracking or accounting for tax related matters. So I would suggest that you setup accounts for each DST in the "Investment" section of Quicken. That will allow you to not only enter relevant transactions, such as initial investments, and other potential capital infusions, but to also modify the values of these accounts over time so that they track data provided by the sponsoring REIT.

Let me know if you have any followups.

Frankx

All comments

Tom Young

I'd probably opt to use an Investment Account here since that's what they most closely resemble to you now. Plus there are built-in "Actions" in Investment Accounts that you probably could use if and when the DST's distribute cash to you.

I'd probably use a unique Account for each DST, probably with a unique security for each DST, probably using a Buy action for "X" number of shares at a dollar share resulting in a total cost of the basis of the exchanged property tendered, or maybe at a total cost of the FMV of the property tendered? If circumstances warranted it you could change the "Quote" for each security to reflect unrealized gain or loss.

Lot's of "probablies" in here since I've never had a DST.

Frankx

Jason C3

Frankx said:

Hi @Jason C3

So, DST's or Delaware Statutory Trusts, are effectively limited partnerships, where the trust acts for the benefit of participants in the operation of typically high-end commercial real estate properties.

As such the closest thing to this type of investment would be a limited partnership interest, especially since you are not concerned with tracking or accounting for tax related matters. So I would suggest that you setup accounts for each DST in the "Investment" section of Quicken. That will allow you to not only enter relevant transactions, such as initial investments, and other potential capital infusions, but to also modify the values of these accounts over time so that they track data provided by the sponsoring REIT.

Let me know if you have any followups.

Frankx

@Frankx

Perfect explanation and solution to my problem. Thank you!