Will the government extend periods for 1031 exchanges?

Question

I know its of the items National Association of realtors is asking of the government.   They are powerful lobby group in Washington and I feel like they could have some sway.   There is also revenue procedure 2007-56, which may allow for an extension for disasters.   It's clear if they this would take affect in this situation.   I think we are wait and see what the government does.   I have 43 days to select something and I hope they extend it.

Kevin Lisewski · Answer

@Jonathan Barr

I am in the same boat, my 45 days are up 4/18.  Hoping for an extension.

Remember that the intermediary must hold the funds  for the entire 180 days before returning.

I am also thinking of taking the 15% capital gains hit...I don't see how I would be able to find a long term rental tenant in an environment where evictions are not permitted, realtors can't show homes in person in certain places, and many folks are out of work, shrinking the pool of potential renters.

Chris Brown · Answer

Great question.  Speaking from the seat as a Qualified Intermediary who is in the midst of numerous exchanges for clients right now, a question that I am receiving every day.  As of now, no guidance from the IRS has been received. We are operating under the premise that timelines for exchanges will not be extended and encouraging our clients to do the same.

Caleb Brown · Answer

Good cities, they are A/B areas

Jonathan Barr · Answer

@Caleb Brown

Looking in midtown, kck, Shawnee, Overland Park, Lee’s summit and was looking something in Benton.

Caleb Brown · Answer

@Jonathan Barr

What part of KC?

Jonathan Barr · Answer

I'm looking in the midwest mainly Kansas City for my replacement.   I already bought a 14 unit apartment there.   LA there is nothing that cashflows YET!  I'm prepared to take to hit instead of trying to make something work that doesn't really work.

Alyssa Dyer · Answer

@Jonathan Barr it might be worth looking into properties where the inspection reports are provided upfront. With that, you can negotiate when you sign and just wait for an appraisal! Should have everything wrapped up in 2 weeks. Are you replacing in LA?

Rob Pecha · Answer

@Jonathan Barr assuming the rules don’t change and no extension is granted let me know if you run into a 45 day ID jam. May be able to help. Best of luck and stay safe everyone! 🙏

Kevin Lisewski · Answer

You are right - called my intermediary and funds can be released day 46.  Still no news on an extension...fingers crossed.

Jonathan Barr · Answer

@Kevin Lisewski

Hi my accommodator said my funds could be released after 46 days with state withholding a being taken out.

Will the government extend periods for 1031 exchanges?

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