On Thursday, April 9th the IRS published the IRS published Notice 2020-23 issuing guidance granting deadline relief for 1031 Exchanges. The Notice from the IRS leaves some issues unclear, but we have summarized key facts below:
• Anyone that sold relinquished property and their 45-day deadline falls between April 1st and July 15th.
• Anyone that sold relinquished property and their 180-day deadline falls between April 1st and July 15th.
What is the Extension?
• The 45-day deadline has been extended to July 15th.
• THe 180-day deadline has been extended to July 15th.
• Taxpayer Bob sold his property on March 1st. His day 45 deadline of 4/15 is now extended to 7/15.
• Taxpayer Sue sold her property on October 4, 2019. Her day 180 of 4/1/2020 is now extended to 7/15/2020. She does not have an extension for her day 45.
It is unclear if this will be the final guidance that the IRS issues related to 1031 Exchange deadlines. It leaves some questions unanswered and does not go into as much detail as we would have hoped. We are working diligently for further guidance from the IRS and will update you as soon as we have further clarification.
Leonard Spoto is a founding partner of the 1031 Exchange Qualified Intermediary, Asset Exchange Company. Leonard is a frequent keynote speaker and an accredited course instructor on the subject of 1031 Tax Deferred Exchanges. He has presented his popular real estate and tax workshops to over 20,000 Realtors, lenders, title professionals and investors and is the author of numerous published 1031 Exchange articles.