1031 Exchange Disaster Extension Timing

[Andy Cowan]

Hi,

I am helping my mother with a 1031 exchange and am confused about whether or not she is eligible for an extension of the 45 and 120 day deadlines under Revenue Procedure 2018-58, section 17. She resides in, and the property was sold in one of the named affected counties. In her instance, the sale of the property was closed on 8/24. The wildfires began on 8/14 and the disaster declaration was issued on 8/26. 

Is she eligible for the extension if the sale of the exchange property occurred AFTER the beginning of the disaster? What does she need to do to notify the IRS that she will be using the extended identification period? Is it automatic?

Here is the IRS news bulletin: https://www.irs.gov/newsroom/i...

Thank you!