1031 Exchange Deadline EXTENDED

[Natalie Kolodij]

IRS Released Notice 2020-23 which basically extended ...everything left that was due before 7/15...to 7/15. 

Additionally, It included some wording that referenced back to an IRS rev Proc 2018-58 which was released a few years ago to handle a national disaster timelines. One of the items it addresses are "time sensitvie" exchanges including 1031 exchanges. 

So if you currently have a 1031 OR a QOZ transaction where the deadline is between 4/1/2020 and 7/15/2020

Your deadline is now 7/15/2020 

[Bill Exeter]

Hi @Suzanne Player, 

We do not anticipate any further extensions of time for 1031 Exchange transactions.  I participated on a webinar about two months ago where an IRS attorney acknowledged there was lots of confusion surrounding the extensions granted and that they intended to issue FAQs to clarify the extensions granted.  This tells me that they have no intention of granting additional extensions, but to merely clarify what was already granted.  It has been over two months now and we still have not seen any FAQs at this point.  

Although unlikely in our opinion, it is possible that we could get a surprise notice with additional extensions or clarifications, so those investors that have funds in a 1031 Exchange today and have technically failed (even with the extensions) should discuss with their legal and tax advisor whether they should leave the funds in for a while to see if we are surprised with additional extensions or guidance or if they should just pull their funds out.