Gotta Minute – Learn A Lot!
A recent snow day in Portland was a rare event that got me thinking about another rare occurrence: 1031 Exchange disaster extensions. If you’re in the middle of a 1031 Exchange and find yourself facing a federally declared disaster, you might be eligible for some much-needed relief.
What Are 1031 Exchange Timeline Extensions?
According to Revenue Procedure 2018-5, there are provisions for extending the 45-day and 180-day deadlines in a 1031 Exchange when a qualifying federally declared disaster occurs. This is significant because it allows affected taxpayers some breathing room during challenging times.
When Does a Disaster Relief Notice Come Into Play?
When the IRS declares a disaster, they will issue a disaster relief notice. This notice outlines:
- The disaster date
- The general postponement date
- A list of affected taxpayers
This means that if you find yourself in a federally declared disaster zone, you might qualify for an extension of your 1031 Exchange deadlines. However, let’s be clear: a light dusting of snow doesn’t typically qualify. You need a significant event to trigger these extensions.
Key Points to Remember
Here are a few important takeaways regarding 1031 Exchange timeline extensions:
- Qualifying Disaster: Extensions apply only in the event of federally declared disasters.
- IRS Guidelines: Always refer to the IRS for the most current and detailed information regarding disaster relief notices.
- Local Impact: Even if the disaster is national, the impact on your specific property or investment must be considered.
How to Stay Informed
If you’re uncertain about whether your situation qualifies for an extension, I recommend visiting our 1031Exchange.com 1031 Exchange Disaster Extension page for detailed information. Keeping informed is key to making the best decisions for your investments.
Final Thoughts
A snow day is a good reminder that life can throw unexpected challenges our way, including in the realm of real estate. If you’re in a position to benefit from a 1031 Exchange, make sure you’re aware of these potential extensions and how they can provide you with additional time to make critical decisions.
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The Guys With All The Answers…
David and Thomas Moore, the co-founders of Equity Advantage & IRA Advantage
Whether working through a 1031 Exchange with Equity Advantage, acquiring real estate with an IRA through IRA Advantage or listing investment property through our Post 1031 property listing site, we are here to help Investors get where they want to be. Call them today! 503-635-1031.
