Recently, the IRS issued the Notices described and linked in the chart below in connection with certain federally-declared disasters. These Notices provide extensions of many time-sensitive tax deadlines, including 1031 deadlines pursuant to IRS Revenue Procedure 2018-58 (Rev. Proc.), for certain eligible taxpayers, as described in the particular Notice. The areas affected by the specific disaster are also described in the particular Notice.

Section 6 of the Rev. Proc. allows certain taxpayers to extend certain 1031 deadlines to the “Extended Date” described in the chart above.  

Section 17 of the Rev. Proc. allows certain taxpayers to extend certain 1031 deadlines to the “Extended Date” described in the chart above 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).

Taxpayers meeting the definition of “Affected Taxpayer” in the particular Notice may be eligible for both the Section 6 and Section 17 extensions and, if so, 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 may also be 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: 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.