The choice between a deferred sales trust and a 1031 exchange depends on the owner’s intentions and ability to meet the deadlines imposed by the internal revenue service. The dst is an irrevocable trust and, like all irrevocable trusts, the grantor (in. 1031 Exchange Dst Properties Property Investor Property Real Estate Companies Deferred sales trust at the close of sale, either through escrow or attorney. Deferred sales trust irs . Deferred sale trust is a trademarked product that sounds like a tax planning concept. In a deferred sales trust or monetized installment sale, an intermediary is involved who accepts purchase proceeds from a buyer and then provides funds to seller in either the form of loan or though a stream of payments from investments that are made by the intermediary. Finally, a “swap and drop” permits reinvestment into a fractional interest in a diversified real estate portfolio. In march 2002, the irs issued rev. These quasi installment sales are structur...