1031 Extension Due to COVID-19 Emergency – Updated April 13, 2020April 13, 2020

On April 9, 2020 the IRS issued Notice 2020-23, extending a variety of deadlines, including 1031 deadlines. The Notice extends any 45-day or 180-day deadline that occurs between April 1 and July 14, to July 15, 2020.

Here are two examples to illustrate the current extension.
Example 1: Exchange began April 5, 2020. 45th day is May 20,2020 which would be extended to July 15, 2020. Taxpayer must still close on replacement property by October 3,2020 which is the 180th day; because October 3, 2020 is after the last day of the disaster period (July 15, 2020).

Example 2: Exchange began December 31, 2019, 45th day is February 14, 2020. ID period is not extended because it is before April 1. The 180th day is June 28,2020 which would be extended to July 15, 2020.

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