Beginning with Basis

Real estate is land and all that is permanently a part of it, either on, or under, including water, trees, buildings, minerals, oil. "Real estate," also called "real property," is a term that developed in medieval times. When contests were held over the title of a piece of land, the person judged as rightful owner received the real (actual) property as the settlement of the dispute. The term "real estate" today, is used to refer to land and the property on it, and to the real estate industry — including both domestic and commercial land, appurtenant property, the leasing of same, and financing of and investment in same.
Read without fail about basis of Real Estate

Real Estate Investment Trusts (REITs)

A Real Estate Investment Trust, (REIT), is a corporation or trust that combines the capital of many investors to acquire or provide financing for all forms of real estate. A corporation or trust that qualifies as a REIT generally does not pay corporate income tax to the Internal Revenue Service. Most states honor this federal treatment and do not require REITs to pay state income tax either. This means that nearly all of a REIT's income is distributed to shareholders, without double taxation on the income. Unlike a partnership, a REIT cannot pass its tax losses onto its investors.
See more on Real Estate Investment Trusts (REITs)