Richards Layton & Finger
 

Time Extension for 1031 Exchanges

April 20, 2020

The Department of Treasury and the Internal Revenue Service have recently extended relief to certain taxpayers in light of the COVID-19 pandemic. On April 9, 2020, Treasury and the IRS issued Notice 2020-23, which, in part, extends the deadlines for certain filings and other actions, including those relating to like-kind exchanges of real estate for certain taxpayers.

For those taxpayers seeking to take advantage of the tax benefits associated with a like-kind exchange of real estate, the notice extends to July 15, 2020 the deadline for specified time-sensitive actions that were otherwise due to be performed on or after April 1, 2020, but prior to July 15, 2020. Time-sensitive actions under the notice include the 45-day identification period and 180-day exchange period in finding or acquiring, respectively, a replacement property for a like-kind exchange of real estate.

As the situation involving COVID-19 continues to evolve, so too do government guidelines and notices in response. Investors seeking to make use of like-kind exchanges should be aware of this changing landscape and consult with their tax and legal advisors to determine whether these changes apply to them.

Related Practices