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Your 1031 exchange resource ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏
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The IRS can extend certain time-sensitive deadlines in connection with a federally declared disaster by issuing a notice, guidance, or IRS News Release (an “IRS Notice”). These IRS Notices often extend 1031 deadlines as set forth in IRS Revenue Procedure 2018-58 (“Rev. Proc.”). On July 13, 2023, the IRS issued Notice VT-2023-01 in connection with the recent flooding in Vermont that may extend your 1031 deadlines pursuant to the Rev Proc. The date of this disaster is July 9, 2023, the extended deadline date provided by the IRS is November 15, 2023, and the current disaster area is all of Vermont. All of the IRS’s disaster notices can be found on the IRS website here: www.irs.gov/newsroom/tax-relief-in-disaster-situations.
Included at the bottom of this email is a chart of recent federally declared disasters for which the IRS has provided 1031 deadline extensions. The IRS periodically updates and revises the IRS Notices, which may include changes to the disaster areas and extended dates. Taxpayers should review the information directly on the IRS website for additional IRS Notices and updates and revisions.
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.
Taxpayers meeting the definition of “Affected Taxpayer” under an IRS Notice are eligible for both the Section 6 and Section 17 extensions under the Rev. Proc., regardless of the relinquished property and/or replacement property location and must choose which extension option to proceed under. The definition of “Affected Taxpayer” typically includes individuals who live, and businesses whose principal place of business is located, in the covered disaster area (also described in the IRS Notice). 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”).
Section 6 of the Rev. Proc. allows certain taxpayers to extend 1031 deadlines to the date provided in this IRS Notice. Section 17 of the Rev. Proc. allows certain taxpayers to extend certain 1031 deadlines to 120 days OR the extended date provided in this IRS Notice– 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). Learn more about 1031 disaster extensions here: apiexchange.com/disaster-relief/
Consult with your tax advisor to determine if an extension applies to your exchange and alert your Exchange Counselor as soon as possible.
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State |
Disaster Date |
IRS Notice’s Extended Date |
Disaster Area |
Vermont
VT-2023-01 |
7/9/23 |
11/15/23 |
All of Vermont (as of July 13, 2023) |
Guam
GU-2023-01 |
5/22/23 |
10/2/23 |
Guam (as of May 24, 2023) |
Northern Mariana Islands
NMI-2023-01 |
5/22/23 |
10/22/23 |
Agrihan, Alamagan, Pagan, Rota, Saipan and Tinian islands (as of May 24, 2023) |
California
CA-2023-04 |
2/21/23 |
8/15/23 |
Modoc and Shasta counties (as of May 26, 2023) |
Florida
FL-2023-04 |
4/12/23-4/14/23 |
8/15/23 |
Broward County (as of May 1, 2023) |
Oklahoma
OK-2023-01 |
4/19/23-4/20/23 |
8/31/23 |
Cleveland, McClain and Pottawatomie counties (as of May 9, 2023) |
Indiana
IN-2023-02 |
3/31/23-4/1/23 |
7/31/23 |
Allen, Benton, Brown, Clinton, Grant, Howard, Johnson, Lake, Monroe, Morgan, Owen, Sullivan, and White counties (as of 6/2/23) |
Tennessee TN-2023-02 |
3/31/23-4/1/23 |
7/31/23 |
Cannon, Giles, Hardeman, Hardin, Haywood, Johnson, Lewis, Macon, McNairy, Morgan, Rutherford, Tipton, and Wayne counties (as of 5/17/23) |
Arkansas AR-2023-01 |
3/31/23 |
7/31/23 |
Cross, Lonoke, and Pulaski counties (as of 4/3/23) |
Mississippi
MS-2023-02 |
3/24/23-3/25/23 |
7/31/23 |
Carroll, Humphreys, Monroe, Montgomery, Panola, Sharkey, and Washington counties (as of 4/20/23) |
New York
NY-2023-04
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12/23/22-12/28/22 |
5/15/23 |
Erie, Genesee, Niagara, St. Lawrence, and Suffolk counties (as of 3/24/23) |
California (Mar. 9 Disaster)
CA-2023-03 |
3/9/23 |
10/16/23 |
Alpine, Amador, Butte, Calaveras, Del Norte, El Dorado, Fresno, Glenn, Humboldt, Imperial, Inyo, Kern, Kings, Lake, Los Angeles, Madera, Mariposa, Mendocino, Merced, Mono, Monterey, Napa, Nevada, Orange, Placer, Plumas, Sacramento, San Benito, San Bernardino, San Francisco, San Joaquin, San Mateo, San Luis Obispo, Santa Barbara, Santa Clara, Santa Cruz, Sierra, Sonoma, Stanislaus, Trinity, Tulare, Tuolumne and Yuba counties (as of 3/17/23) |
California
(Dec. 27 Disaster)
CA-2023-02 |
12/27/22 |
Updated to 10/16/23
(previously 5/15/23) |
Alameda, Alpine, Amador, Butte, Calaveras, Colusa, Contra Costa, Del Norte, El Dorado, Fresno, Glenn, Humboldt (including the Hoopa Valley Tribal Nation), Inyo, Los Angeles, Madera, Marin, Mariposa, Mendocino, Merced, Monterey, Napa, Nevada, Placer, Sacramento, San Benito, San Joaquin, San Luis Obispo, San Mateo, Santa Barbara, Santa Clara, Santa Cruz, San Diego, San Francisco, Siskiyou, Solano, Sonoma, Stanislaus, Sutter, Tehama, Trinity, Tulare, Tuolumne, Ventura, and Yolo counties (as of 5/30/23) |
Alabama
AL-2023-01 |
1/12/23 |
Updated to 10/16/23 (previously 5/15/23) |
Autauga, Barbour, Chambers, Conecuh, Coosa, Dallas, Elmore, Greene, Hale, Mobile, Morgan, Sumter and Tallapoosa counties (as of 2/6/23) |
Georgia
GA-2023-01 |
1/12/23 |
Updated to 10/16/23
(previously 5/15/23) |
Butts, Crisp, Henry, Jasper, Meriwether, Newton, Pike, Spalding, and Troup counties (as of 2/13/23) |
California
(Jan. 8 Disaster)
CA-2023-01 |
1/8/23 |
Updated to 10/16/23
(previously 5/15/23) |
Alameda, Colusa, Contra Costa, El Dorado, Fresno, Glenn, Humboldt, Kings, Lake, Los Angeles, Madera, Marin, Mariposa, Mendocino, Merced, Mono, Monterey, Napa, Orange, Placer, Riverside, Sacramento, San Benito, San Bernardino, San Diego, San Francisco, San Joaquin, San Luis Obispo, San Mateo, Santa Barbara, Santa Clara, Santa Cruz, Solano, Sonoma, Stanislaus, Sutter, Tehama, Tulare, Ventura, Yolo, and Yuba counties (as of 1/11/23) |
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*This information is provided for convenience only and is only a partial list of IRS Notices and federally declared disasters. The IRS periodically updates and revises the IRS Notices, which may include changes to the disaster areas and extended dates. Taxpayers should consult with their tax advisor and review the information directly on the IRS website for additional IRS Notices and updates and revisions. irs.gov/newsroom/tax-relief-in-disaster-situations
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