IRS Extends 1031 Exchange Deadlines

Posted on May 26, 2020

Investors who could not complete Section 1031 tax-deferred exchanges of commercial property due to the economic disruption caused by the COVID-19 pandemic may breathe a sigh of relief. The IRS extended the statutory periods of time to identify and/or close on replacement property without losing the preferential tax treatment.

Under guidance issued by the IRS, investors whose 45-day deadline to identify 1031 replacement property and/or their 180-day deadline to complete an exchange fall between April 1 and July 15 may delay these time limits to July 15, 2020. While these extensions provide investors with more time to select the right replacement property that aligns with their unique investment needs and goals, professional real estate and tax organizations have been active lobbying congress to ask for an additional period of time to complete these transactions.

With offices in Miami, Orlando, New York City and Geneva, the team at Orion works with investors, developers, property owners and brokers through all phases of real estate transactions, from strategic planning and analysis to financing, negotiation, property management and disposition. For more information, call (305) 278-8400 or email info@orionmiami.com.