Can I buy shares in a Real Estate Investment Trust (REIT) as my like-kind replacement property?

No. Your relinquished properties and your like-kind replacement properties must be like-kind property in order to qualify for 1031 exchange treatment. So, if you sell an interest in real property you must also acquire an interest in real property. An interest in a Real Estate Investment Trust (REIT) is actually a security interest and not an interest in real property even though the REIT itself owns real property, and security interests are specifically excluded from 1031 tax-deferred exchange treatment. You can complete an upREIT structure that involves a combination of a 1031 exchange first with a 721 exchange later. This structure effectively allows you to dispose of real estate and exchange into a REIT on a tax-deferred basis. There are limitations however, so you might want to read more about the various tax-deferral solutions available.  more