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.”): irs.gov/pub/irs-drop/rp-18-58.pdf

Recently, the IRS issued Notice MT-2026-05 and HI-2026-03 in connection with severe storms in Montana and earthquake in Hawaii  that may extend your 1031 deadlines pursuant to the Rev. Proc. The date of these disasters, current disaster areas, and extended deadlines are set forth in the chart below. 

All of the IRS’s disaster notices can be found on the IRS website here: 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 may be 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 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”).

Section 6 of the Rev. Proc. allows certain taxpayers to extend certain 1031 deadlines to the date specified in the applicable IRS Notice (the “Notice Extended Date”).  

Section 17 of the Rev. Proc. allows certain taxpayers to extend certain 1031 deadlines to 120 days OR the extended date provided in the applicable 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!