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UPDATE: IRS announces tax relief for victims of Hurricane Ian

In response to Hurricane Ian, the IRS has announced tax relief for those in affected areas including the states of Florida, South Carolina, and North Carolina. The below is a summary of the specific tax relief in relation to 1031 exchanges.
IRS announces tax relief for Hurricane Ian victims

Due to Hurricane Ian, the IRS has issued extensions of the 45-day and 180-day deadlines for the entire states of Florida, South Carolina, and North Carolina.

 

The Disaster Date is September 23, 2022. The General postponement date is February 15, 2023.

 

Affected (“Exchangor" or "Exchanger") Individual or entity desiring an exchange. Taxpayer s are defined as those individuals who live, and businesses whose principal place of business is located in the covered disaster area (anywhere in the state of Florida, South Carolina, or North Carolina). Affected taxpayers are entitled to relief regardless of where the relinquished property or replacement property is located. Affected (“Exchangor" or "Exchanger") Individual or entity desiring an exchange. Taxpayer s may choose either the General Postponement relief under Section 6 or the Alternative relief under Section 17 of Rev. Proc. 2018-58.

Option 1: (Section 6: Affected Taxpayers only.) Any 45-day deadline or 180-day deadlines (for either a forward or reverse exchange) that falls on or after the disaster date is postponed to the general postponement date. The general postponement applies regardless of the date the Those certain items of real and/or personal property described in the relinquished property contract and qualifying as “relinquished property” within the meaning of Treasury Regulations Section 1.1031(k)-1(a); The "Old Asset”, property or properties given up or conveyed by a taxpayer as part of a 1031 exchange. Relinquished Property was transferred (or the parked property acquired by the EAT) and is available to Affected Taxpayers regardless of whether their exchange began before or after the Disaster Date.

Option 2: (Section 17 Alternative: Available to Affected (“Exchangor" or "Exchanger") Individual or entity desiring an exchange. Taxpayer s and other taxpayers who have difficulty meeting the exchange deadlines because of the disaster.) Option 2 is only available if the relinquished property was transferred (or the parked property was acquired by the EAT) on or before the Disaster Date. Any 45-day or 180-day deadline that falls on or after the Disaster Date is extended to the longer of (1) 120 days from such deadline; or (2) the General postponement date.

 

Visit for full details on the tax relief.

 

Details above provided by the Federation of Exchange Same as intermediary, facilitator, or Qualified Intermediary. The party who facilitates a tax-deferred exchange by acquiring and selling property in an exchange to aid the taxpayer in complying with Section 1031 and all applicable rules. Accommodator s (FEA).

 

Updated 10/13/2022.

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