REIT as 1031 replacement property...

“Can I buy REIT shares as my replacement property?”

I often hear about qualified intermediaries saying you can, but what does the IRS say?

Absolutely not! The IRS has ruled that REIT shares do not qualify as replacement property in a 1031 exchange. A REIT, or Real Estate Investment Trust, is like a mutual fund that owns real estate. It is a security, however, not real estate.

--The Experts