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When you sell an investment property and initiate a 1031 exchange, your proceeds don't sit in your bank account — they're transferred to a Qualified Intermediary (QI), who holds them in escrow until you close on your replacement property. That period can last up to 180 days. A natural question follows: do qualified intermediaries pay interest on those funds, and if so, who gets it? The answer depends entirely on which QI you choose. How Interest Works During a 1031 Exchange W

Most real estate investors know that a 1031 exchange defers capital gains taxes. Fewer realize that when working with the right Qualified Intermediary, those funds can earn meaningful interest that comes back to them at the close of the exchange. That interest is taxable as ordinary income in the year it's received, so it's worth factoring into your tax planning upfront. But once it's in your hands, it's yours to use however you see fit. For real estate investors, that opens

A 1031 exchange is one of the most powerful tax deferral strategies available to real estate investors. But it's also one of the easiest to get wrong. Unlike most real estate transactions, a 1031 exchange has strict rules, hard deadlines, and no flexibility for mistakes. Miss a step and the entire exchange is disqualified, triggering an immediate capital gains tax bill. Here are the most common reasons a 1031 exchange fails, and what you can do to avoid them. Missing the 45-D