One of the most common questions among real estate investors: Can I complete a 1031 (like-kind) exchange by rolling capital gains from an investment property into purchasing shares of a real estate investment trust (REIT)?
Directly exchanging into a REIT does not qualify for tax deferral under IRS rules, for reasons we’ll explore below. However, two compelling alternative vehicles exist that check many of the same boxes that REITs do, allowing investors to still delay tax obligations while accessing exposure to institutional-quality real estate assets.
