NEWS

Deadline Relief for Like-Kind Exchange and Opportunity Zone

Federal

The IRS has granted relief from statutory deadlines with property owners involved in 1031 like-kind exchanges and opportunity zones.

Due to the current COVID-19 pandemic, many individuals and businesses who are in the middle of a like-kind exchange or taking advantage of the opportunity fund with deadlines that fall between April 1st and July 14th, 2020, are automatically delayed until July 15th, 2020.

For example, meeting the 45-day deadline for identifying a property to acquire can be impossible if access is not granted to investigate the property to determine its desirability. Likewise, those who are approaching the 180-day deadline for closing on a replacement property can find it impossible to do so because of the shutdown of title companies and other problems resulting from the widespread closure of business operations around the nation.

NAR has expressed gratitude for the deadline relief but noted in a subsequent letter to the Treasury Department that those with 1031 like-kind exchange deadlines occurring from March 13th (the start of the COVID-19 disaster) through March 31st, 2020, were not covered by the Notice. The letter requests deadline relief for those with deadlines falling between these dates also.

Investors who are planning to roll over capital gains are also given until July 15th, 2020, if the 180-day requirement under the Opportunity Zone rules falls between April 1st and July 14th, 2020.

Wednesday, April 29, 2020
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