1031 exchange identification deadline extension

[Marcus Welson]

Hello everyone.

I'm trying to breakdown how an IRS 1031 extension notice applies to a 1031 exchange. All help is greatly appreciated. 

Facts

- Property Sale/Closing date: October 21, 2024
- Property Location: sold in Miami Dade County, FL
- 1031 potential replacement property identification deadline: 45 day identification deadline of December 5, 2024.
- Seller's residence county: Orange County, FL

IRS Notice for reference:
FL-2024-10 - Hurricane Milton IRS extension
https://www.irs.gov/newsroom/irs-announces-tax-relief-for-victims-of-milton-various-deadlines-postponed-to-may-1-2025-in-all-of-florida

My Assumptions:

A. Orange County, FL is a covered disaster area listed in the above notice. 

B. I am an affected taxpayer as the property sold was located in Miami-Dade County and I a reside in Orange County and both counties are named, covered disaster areas. 

C. On the October 21, 2024 sale, the 1031 was started with a Qualified Intermediary that same day, so the transaction is a  transaction governed by Rev. Proc. 2000-37 and therefore qualifies for extension under Rev. Proc. 2018-58 -SECTION 17.02(2)(a) [ see analysis section below for link and text ].

D. Based on these assumptions and the IRS notice's text that "The IRS also gives affected taxpayers until May 1, 2025, to perform other time-sensitive actions described in Treas. Reg. § 301.7508A-1(c)(1) and Rev. Proc. 2018-58, 2018-50 IRB 990 (Dec. 10, 2018), that are due to be performed on or after Oct. 5, 2024, and before May 1, 2025, are granted additional time to file through May 1, 2025." the 45 day identification deadline is extended because Rev. Proc. 2018-58 extends the deadline in cases of federally declared emergencies and the exchange is a transaction governed by Rev. Proc. 2000-37. 

Further analysis notes:

Rev. Proc. 2018-58 -SECTION 17. SPECIAL RULES FOR SECTION 1031 LIKE-KIND EXCHANGE TRANSACTIONS, page 135 states:

". 01 Taxpayers are provided the relief described in this section if an IRS News Release or other guidance provides relief for acts listed in this revenue procedure (unless the news release or other guidance specifies otherwise).

.02

(1) The last day of a 45-day identification period set forth in § 1.1031(k)-1(b)(2)(i) of the Income Tax Regulations, the last day of a 180-day exchange period set forth in § 1.1031(k)-1(b)(2)(ii), and the last day of a period set forth in section 4.02(3) through (6) of Rev. Proc. 2000-37, 2000-2 C.B. 308, modified by Rev. Proc. 2004-51, 2004-2 C.B. 294, that fall on or after the date of a federally declared disaster, are postponed by 120 days or to the last day of the general disaster extension period authorized by an IRS News Release or other guidance announcing tax relief for victims of the specific federally declared disaster, whichever is later. However, in no event may a postponement period extend beyond: (a) the due date (including extensions) of the taxpayer’s tax return for the year of the transfer (See § 1.1031(k)-1(b)(2)(ii)); or (b) one year (See section 7508A(a)).

(2) A taxpayer who is a transferor qualifies for a postponement under this
section only if--
(a) The relinquished property was transferred on or before the date
of the federally declared disaster, or in a transaction governed by Rev. Proc. 2000-37, modified by Rev. Proc. 2004-51, qualified indicia of ownership were transferred to the the earlier of a total of 180 – days or the date upon which the exchanger has to file its tax return for the year in which the exchange was initiated, to complete the purchase of the replacement properties."

Questions:

1. Based on the above is my understanding correct and the 45 day identification period and 180 replacement property purchase period (which includes the 45 days) both extended?

2. The deadline is extended until May 1, 2025 by the IRS Emergency Disaster Relief Notice (This date is also "the last day of the general disaster extension period authorized by an IRS News Release or other guidance announcing tax relief for victims of the specific federally declared disaster" Rev. Proc. 2018-58 -SECTION 17.02(1). However, the actual deadline would be April 15, 2025 my individual tax payer filing deadline per Rev. Proc. 2018-58 -SECTION 17.02(1)'s provision that "However, in no event may a postponement period extend beyond: (a) the due date (including extensions) of the taxpayer’s tax return for the year of the transfer."

3. I can extend the April 15, 2025 deadline by seeking an extension of my individual return as per Rev. Proc. 2018-58 -SECTION 17.02(1)'s provision that "However, in no event may a postponement period extend beyond: (a) the due date (including extensions) of the taxpayer’s tax return for the year of the transfer."

4. Please advise if I have missed anything or anything else you believe is relevant. 

Thank you for your help trying to make sense of the convoluted IRS notice and regulations.