Tax Relief for Victims in Disaster Situations
Relief for Victims of California Wildfires
- The IRS is providing a variety of tax relief for those affected by California Wildfires. For more information, check the California Wildfires page.
Relief for Victims of Hurricane Irma
- TheIRS is providing a variety of tax relief for those affected by Hurricanes Irma and Maria. For more information, check the Hurricane Irma page.
Relief for Victims of Hurricane Harvey
- The IRS is providing a variety of tax relief for those affected by Hurricane Harvey. For more information, check the Hurricane Harvey page.
Requirements for Postponement of 1031 Exchange Time Periods
Special tax law provisions may help taxpayers recover financially from the impact of a disaster such as a flood, hurricane, tornado, wildfire or certain other natural disasters or catastrophic events, particularly when the federal government declares a location to be a Presidentially-declared disaster area often referred to as a federally-declared disaster. If the IRS releases an official notice, then Section 17 of Revenue Procedure 2007-56 provides extensions of certain time deadlines in a 1031 exchange. Read More
Important Information for Investors Beginning a 1031 Exchange
From October 17 – December 31, 2017
Do Not File Your 2017 Income Tax Return Until Your Exchange Has Been Fully Completed.
The time frame you have to complete the acquisition of your replacement property ends at midnight on the earlier of the 180th day after the date you transferred the relinquished property OR the due date (including extensions) for your income tax return for the taxable year in which the transfer of the relinquished property occurs. (U.S. Treasury Regulations section 1.1031(k)-1(b)(2)).
This means, if the 180th day following the closing of your first relinquished property falls after the due date for your 2017 tax return (this year, for individuals, April 17, 2018) you must file an application for extension of time with the IRS to extend the due date. If you do not file for an extension, you will NOT be able to acquire any replacement property in your exchange after your tax return due date.
If your exchange is not completed by the due date of your tax return —
FILE AN EXTENSION.
If you have any questions, please call your Exchange Counselor at
NAR Opposes the First Draft of the Tax Reform Framework
NAR opposes the first draft of the tax reform framework that the Trump Administration and Republican congressional leaders have released. It works against the interest of most middle-income homeowners. Other topics include 1031 exchanges, the best remodeling projects from a resale standpoint, and what to do after a natural disaster strikes to keep transactions on track. Read More
Live Webinar: 1031 Exchange Issues in 2017
Join our one-hour 1031 exchange webinar for tax and legal advisors (CPE credit available) on Monday, December 4th at 11:00 a.m. EST. This webinar tackles issues such as reverse and improvement exchanges, related party issues and how to avoid common pitfalls. You will receive a summary of current developments regarding possible tax reform and the implications on 1031 exchanges. Webinar Details. Register Now
1031 Tools: 45/180 Day Calculator
From the closing on the sale of the relinquished property, an exchanger must: (1) properly identify potential replacement properties within 45 calendar days (the “Identification Period”) and; (2) close on the replacement property(ies) within 180 calendar days of the transfer of relinquished property sale (the “Exchange Period”). To access a calculator and determine your 45-day Identification Period and 180-day Exchange Period, click here…
Where Millennials Are Moving
The housing market is a function of the interaction of supply and demand. Since 2016, Millennials make up the largest homebuyer demographic in the U.S. even though they, as a group, are not yet into the age that has the greatest demand. Those aged 31 are the most common first-time homebuyers while the highest age frequency among Millennials is 25, then 24 and 26. Where Millennials ultimately locate and live will have a material impact on respective local housing markets. While Millennials aged 25 to 34 make up just 13.6 percent of the country’s population, the group represents 30 percent of the population of existing homebuyers according to Realtor.com. So where are Millennials moving? Read More
The Benefits of Costs of Tax Deferral:
Analysis of Real Estate 1031 Exchanges
Professors David Ling (Univ. of Fla.) and Milena Petrova (Syracuse U.) have updated their like-kind exchange research and submitted the first half for publication (National Tax Journal). The revised paper, attached, now includes a third author, Professor David Barker from the University of Iowa. Their work remains powerful evidence of the importance of like-kind exchanges to real estate markets and property values. Read More