DST Operating Restrictions
Limits on a DST trustee, often called the seven deadly sins, such as no new capital, no new loans and no reinvesting sale proceeds.
Nashional Investments · Updated October 2026
Educational definition only, not investment, tax or legal advice.
In practice
In a 1031 exchange, small details decide whether the full gain is deferred: the identification deadline, the value and debt you replace, and who holds the sale proceeds. The term DST Operating Restrictions comes up when we review an exchange or a Delaware Statutory Trust offering with a client. We read the offering memorandum, check the sponsor's track record and fees, and confirm the replacement fits the exchange rules before anything closes.
Common questions.
What does the term DST Operating Restrictions mean?
Why does DST Operating Restrictions matter for investors?
See how this fits into a real plan on our 1031 exchanges and DSTs page.
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