Can I invest in a DST through a business entity such as a trust, LLC, partnership or corporation?
Yes, but continuity of title is required for 1031 exchange compliance. This means that the same entity that sells the relinquished property must acquire the DST interest to maintain tax-deferred status. For example, if ABC partnership owns the property being exchanged, ABC partnership itself must invest in the DST. Changing ownership structure immediately before or after the exchange could trigger a taxable event.