SOUTH CAROLINA: The IRS issued Notice SC-2023-02 for all of South Carolina that provides extensions of many time-sensitive tax deadlines, including 1031 deadlines pursuant to IRS Revenue Procedure 2018-58 (Rev. Proc.).
Section 6 of the Rev. Proc. allows certain taxpayers to extend certain 1031 deadlines to February 15, 2024.
Section 17 of the Rev. Proc. allows certain taxpayers to extend certain 1031 deadlines to February 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 October 18, 2023, the disaster area is: all of South Carolina.
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”).
CALIFORNIA: The IRS has updated the existing extensions of certain time-sensitive tax deadlines related to the California 2022/2023 winter storms announced in January and March 2023 from October 16, 2023 to November 16, 2023. That information can be found here: https://www.irs.gov/newsroom/for-california-storm-victims-irs-postpones-tax-filing-and-tax-payment-deadline-to-nov-16
