While direct exchange into a REIT disqualifies tax deferral, UPREITs (721 exchanges) and Delaware statutory trusts (DSTs) provide alternative vehicles that allow investors to delay tax obligations while investing in institutional-quality real estate assets. UPREITs offer scalability and professional management access, while DSTs provide more tailored exposure and direct ownership of tangible assets. Both structures enable fractionalized sale, lower investment minimums, and property management simplicity, making them attractive options for 1031 exchanges and managing legacy investment capital gains.