On November 24, 2023, the IRS issued Notice IL-2023-07 for portions of Illinois and Notice VI-2023-01 for St. Croix, U.S. Virgin Islands 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 in connection with the Illinois disaster.

Section 17 of the Rev. Proc. allows certain taxpayers to extend certain 1031 deadlines to February 15, 2024 (for Illinois) 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 November 24, 2023, the disaster area is: Cook County, Illinois.

Section 6 of the Rev. Proc. allows certain taxpayers to extend certain 1031 deadlines to February 29, 2024 in connection with the St. Croix disaster.  

Section 17 of the Rev. Proc. allows certain taxpayers to extend certain 1031 deadlines to February 29, 2024 (for St. Croix) -- 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 November 24, 2023, the disaster area is: St. Croix, U.S. Virgina Islands.

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/

All disaster declarations for which the IRS has provided an extension of 1031 deadlines can be found here: https://www.irs.gov/newsroom/tax-relief-in-disaster-situations

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.