One of the major advantages of a REIT is:

A Real Estate Investment Trust (REIT) offers significant advantages in terms of taxation, particularly because they are structured to avoid double taxation on corporate income. Typically, corporations are taxed at both the corporate level and then again at the individual level when profits are distributed as dividends. However, REITs are required to distribute at least 90% of their taxable income to shareholders in the form of dividends. As a result, they do not pay federal income taxes on the income that is distributed, effectively eliminating the double taxation that is often faced by traditional corporations. This tax efficiency makes REITs an attractive investment option for individuals seeking consistent income through dividends without the burden of corporate tax.

In contrast, options like the complete elimination of all taxes or guaranteed income to investors are not accurate characteristics of REITs. While REITs do provide attractive yields and can result in steady income, this is not guaranteed and can fluctuate based on market conditions and property performance. Similarly, while some investors may view REITs as a more stable investment, they are still subject to market fluctuations that can impact property values and, consequently, the income produced.