On January 18 and 19, 2023, the IRS issued Notices AL-2023-01 and GA-2023-01 that may extend your 1031 deadlines pursuant to IRS Revenue Procedure (Rev. Proc.) 2018-58.
IRS Notice AL-2023-01
IRS Notice GA-2023-01
Section 6 of the Rev. Proc. allows certain taxpayers to extend certain 1031 deadlines to May 15, 2023.
Section 17 of the Rev. Proc. allows certain taxpayers to extend certain 1031 deadlines to May 15, 2023 or 120 days – whichever is later (however, this extension cannot go beyond one year or the due date for the taxpayer’s tax return for the year of the sale, as extended).
As of January 19, 2023, the disaster areas are: Autauga and Dallas counties, Alabama and Butts, Henry, Jasper, Meriwether, Newton, Spalding, and Troup counties, Georgia.
Taxpayers meeting the definition of “Affected Taxpayer” are eligible for both the Section 6 and Section 17 extensions, regardless of the relinquished property and/or replacement property location and must choose which extension option to proceed under. The definition of “Affected Taxpayer” includes individuals who live, and businesses whose principal place of business is located, in the covered disaster area. The Section 17 extension is also available to taxpayers who are having difficulty meeting their 1031 deadlines due to the disaster (See Rev. Proc. Section 17.02(b)(ii) for examples of such “difficulty”).
For a more detailed explanation of the Disaster Relief extensions click here: apiexchange.com/disaster-relief/
Taxpayers should consult their tax advisor to determine their eligibility for an extension and alert their Exchange Counselor as soon as possible of any extended 1031 deadlines.
