On April 9, 2020, the IRS released Notice 2020-23 extending important tax deadlines for individuals and businesses. The Notice applies to all “Specified Time Sensitive Actions” which are due to be performed on or after April 1, 2020, and before July 15, 2020. Deadlines falling within that time frame are now extended to July 15, 2020. In addition to filing dates for specific types of tax returns, this will extend any deadlines for like kind exchanges under Section 1031 of the I.R.C. that fall within the above time period. This extension does not apply to all deadlines in affected 1031 exchanges, only those between April 1 and July 15. This means that if the 45-day identification period in your 1031 exchange ends on May 1, then that deadline is extended to July 15, but the 180-day exchange period will remain unchanged. In this example, the additional time to identify a property may be welcome, but anyone participating in a 1031 exchange should be aware that using the full extended period may leave less time to negotiate and complete the exchange within the 180-day exchange period.
The information provided herein is intended as general information and is not to be construed as legal advice. If legal advice is needed, you should consult an attorney.
Ryan Wilcox is a real estate attorney at Ireland Stapleton Pryor & Pascoe. In his practice, Mr. Wilcox represents real estate developers and investors. He provides legal advice on all aspects of real estate related matters for his clients, including real estate acquisitions, sales, financing, leasing, land use, creation of commercial and residential ownership associations pursuant to the Colorado Common Interest Ownership Act, and 1031 tax deferred exchanges. In connection with his real estate representation, Mr. Wilcox assists with all aspects of entity formation. He can be reached at 303-628-3616 or firstname.lastname@example.org.
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