Internal Revenue Code §1031 allows investors to exchange like-kind properties by trading a property held for business or investment purposes for another one also held for investment purposes. Taxes on the gains received from the sale are deferred. Real estate investment trusts (REITs) allow investors to buy shares in large groupings of properties in the same way they invest in stock market offerings. Purchasing REIT shares is one way to invest in real estate without taking on the burden of buying and selling properties.

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