Answer
Feb 13, 2025 - 11:30 AM
Well, just so we're clear, when you receive it at the end of the year and a DST is the equivalent of a schedule E form and that's the same form you use on your rental property. So it'll be very familiar to you. Your accountant will recognize it. The difference is instead of having on your rental property today, your gross revenues, your expenses, your net income and your depreciation schedule for your property, they do that for the entire DST on one page and then they do a page where it's got your pro-rata share of revenues and expenses, your net income and then you always have to calculate your own depreciation schedule when you do a 1031 exchange but they also provide the data that your accountant would need to know to calculate your depreciation. And so yeah, that's all netted out for US part of the property. You're not having to calculate the expenses being passed through. All that information is provided to you. So you're basically the last thing you're calculating is how much depreciation can you apply to the already calculated net income to reduce the tax consequences of those distribution?
