As anticipated by many, the IRS issued a Notice on April 9, 2020, extending 1031 Tax-Deferred Exchange deadlines. The Notice extends any 45-day identification period deadline or 180-day acquisition period deadline that occurs between April 1 and July 14 to July 15, 2020.
To illustrate these extensions, here is a case in which our company brokered the sale of a property which closed on March 12, 2020 with a calculation of the identification period to expire on April 26, 2020 (45 days from the closing date of the relinquished property). The new 45-day identification period has now been extended to July 15, 2020. The 180-day period to close on the acquisition property remains the same, September 8, 2020 because that date falls outside of the July 15, 2020 time period.
1031 Tax-Deferred Exchanges have advantages, but it is important to get the details right. If you are interested in exploring this strategy with your next Boston Metro commercial real estate transaction, contact the Jay Nuss Realty Group, LLC. For specific tax information and guidance, contact your professional tax preparer, or visit IRS.gov.