On August 29, 2023, the IRS issued Notice AK-2023-10 for portions of Alaska, and on August 30, 2023, the IRS issued Notice FL-2023-06 for portions of Florida. These notices provide extensions of many time sensitive tax deadlines, and may extend your 1031 deadlines pursuant to IRS Revenue Procedure 2018-58 (Rev. Proc.). 

For the Alaska disaster declaration, Section 6 of the Rev. Proc. allows certain taxpayers to extend certain 1031 deadlines to October 31, 2023, and Section 17 of the Rev. Proc. allows certain taxpayers to extend certain 1031 deadlines to October 31, 2023 or 120 days – whichever is later (however, this section 17 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 August 29, 2023, the disaster areas for this Alaska declaration are the regional educational attendance areas of Bering Strait, Copper River, Kuspuk, Lower Kuskokwim, Lower Yukon and Yukon Flats.

For the Florida disaster declaration, Section 6 of the Rev. Proc. allows certain taxpayers to extend certain 1031 deadlines to February 15, 2024, and Section 17 of the Rev. Proc. allows certain taxpayers to extend certain 1031 deadlines to February 15, 2024 or 120 days – whichever is later (however, this section 17 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 August 30, 2023, the disaster areas for this Florida declaration are Alachua, Baker, Bay, Bradford, Calhoun, Charlotte, Citrus, Clay, Collier, Columbia, DeSoto, Dixie, Duval, Flagler, Franklin, Gadsden, Gilchrist, Gulf, Hamilton, Hardee, Hernando, Hillsborough, Jefferson, Lafayette, Lake, Lee, Leon, Levy, Liberty, Madison, Manatee, Marion, Nassau, Pasco, Pinellas, Polk, Putnam, Sarasota, Seminole, St. Johns, Sumter, Suwannee, Taylor, Union, Volusia and Wakulla counties, Florida.

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.