What a BlueLion exchange costs.

We use technology to process 1031 Exchanges faster, waste less time on emails, prevent errors, keep documents in one place, and standardize the quality of our exchanges. Our technology driven approach lets our employees focus on customer service instead of mundane paperwork; we take some of the costs we save through our efficient approach and give it back to our customers by keeping costs low.

Figuring out which type of 1031 exchange you need can be a bit confusing, but it's important to ensure you're taking the right steps to maximize your tax savings. A delayed 1031 exchange is the most common type and allows you to sell your property, then identify and purchase a replacement property within a set timeframe. If you have a buyer lined up for your current property or want to take advantage of a great deal on a replacement property, a delayed exchange may be the best option for you.

A reverse 1031 exchange, on the other hand, allows you to purchase your replacement property before you sell your current property. This can be a great option if you're having trouble selling your current property or don't want to risk missing out on a great replacement property. However, reverse exchanges can be more complicated and expensive to complete.

Finally, an improvement 1031 exchange allows you to use some of the proceeds from the sale of your current property to make improvements on your replacement property. This is a good option if you're not able to find a replacement property that meets your needs, but have identified a property that could be improved to meet your needs. Keep in mind that there are strict rules and timelines that must be followed in order to qualify for any type of 1031 exchange, so it's important to work with a qualified intermediary to ensure all requirements are met.

Let's say that an investor, John, owns a small apartment building in a rapidly gentrifying area. He purchased the property 10 years ago for $500,000 and has seen its value grow to $1.5 million. John has decided he wants to sell the property and reinvest the proceeds in a larger commercial property with better growth potential.

However, John doesn't want to pay capital gains taxes on the $1 million in profit he will make from the sale. So, he decides to kickoff a 1031 exchange through BlueLion and reinvest those funds into another property within 180 days.

The catch is that John hasn't found the perfect property yet. He doesn't want to rush into a bad investment just to meet the deadline. So, he decides to use a delayed exchange, which gives him an additional 45 days (for a total of 225 days) to identify and close on a replacement property.

During this extra time, John begins to research larger commercial properties outside of his local area. He ends up finding a multiplex in a growing suburban town that fits all of his criteria. John closes on the deal and successfully completes his 1031 exchange, deferring capital gains taxes and growing his real estate portfolio.

John owns a rental property in a touristy beach town that he purchased for $500,000 a few years ago. He has been receiving a steady stream of rental income from the property since then. However, he now thinks that the property's value has appreciated considerably and wants to sell it to invest in another property.

John decides to use a 1031 exchange to defer paying capital gains taxes. He finds a buyer who is willing to pay $800,000 for the beach property. Instead of purchasing a like-kind property worth the same amount, John decides to do a reverse exchange and buys a more expensive property in a different location.

John finds a profitable commercial property in a bustling city worth $1.2 million that he believes would fetch a higher rental income. The reverse exchange allows him to defer paying taxes on the $300,000 gain from the beach property and invests it in a more lucrative asset. With the help of BlueLion, a qualified intermediary, John completes the exchange process within the permitted 180 days.

Imagine that Marie owns a small office building in downtown Baltimore that's worth $5 million. However, she's tired of managing the building and wants to invest in something that requires less of her time, like a beachfront hotel in Ocean City, Maryland.

Using BlueLion, a 1031 exchange, Marie can sell her office building, defer the capital gains taxes, and use the proceeds to purchase the beachfront hotel. However, the hotel is only worth $3 million, so Marie will have $2 million in taxable boot.

To avoid the taxes, Marie decides to do an improvement exchange. She invests the $2 million in renovations and improvements to the hotel, increasing its value to $5 million. The improved value of the property is now equal to the amount of her exchange funds, allowing her to defer the entire amount of taxes and own a more valuable asset.

As a result of her savvy financial planning, Marie no longer has to deal with the hassles of managing her Baltimore office building, and now owns a luxurious beachfront hotel that's poised for growth in an attractive tourist destination.