Our thanks to Asset Preservation, Inc. for the information contained in this article.
The IRS can extend certain time-sensitive deadlines in connection with a federally declared disaster by issuing a notice, guidance, or IRS News Release (an “IRS Notice”). These IRS Notices often extend 1031 deadlines as set forth in Revenue Procedure 2018-58 (Rev. Proc.). At the bottom of this email is a chart of recent federally declared disasters for which the IRS has provided 1031 deadline extensions.
All IRS Notices can be found here: https://www.irs.gov/newsroom/tax-relief-in-disaster-situations.
The IRS periodically updates and revises the IRS Notices, which may include changes to the disaster areas and extended dates. Taxpayers should review the information directly on the IRS website for additional IRS Notices and updates and revisions.
Section 6 of the Rev. Proc. allows certain taxpayers to extend 1031 deadlines to the date specified in the applicable IRS Notice (the “Notice Extended Date”).
Section 17 allows certain taxpayers to extend 1031 deadlines to the longer of: the Notice Extended Date or 120 days (however, this extension cannot go beyond one year or the due date for the taxpayer’s tax return for the year of the sale, as extended).
Taxpayers meeting the definition of “Affected Taxpayer” are eligible for both the Section 6 and Section 17 extensions, regardless of the relinquished property and/or replacement property location and must choose which extension option to proceed under. The definition of “Affected Taxpayer” includes individuals who live, and businesses whose principal place of business is located, in the covered disaster area (described in the IRS Notice). The Section 17 extension is also available to taxpayers who are having difficulty meeting their 1031 deadlines due to the disaster (See Rev. Proc. Section 17.02(b)(ii) for examples of such “difficulty”).
Learn more about 1031 disaster extensions here: https://apiexchange.com/disaster-relief/
Taxpayers should consult their tax advisor to determine their eligibility for an extension and alert their Exchange Counselor as soon as possible of any extended 1031 deadlines.
|
State |
Disaster Date |
IRS Notice’s Extended Date |
Disaster Area |
|---|---|---|---|
|
California |
12/27/22 |
5/15/23 |
Alameda, Butte, Calaveras, Colusa, Contra Costa, Fresno, Glenn, Humboldt, Los Angeles, Marin, Mendocino, Merced, Monterey, Placer, Sacramento, San Benito, San Joaquin, San Luis Obispo, San Mateo, Santa Barbara, Santa Clara, Santa Cruz, Siskiyou, Sonoma, Trinity, Tulare, Ventura, and Yolo counties (as of 2/2/23) |
|
Alabama |
1/12/23 |
5/15/23 |
Autauga, Barbour, Chambers, Conecuh, Coosa, Dallas, Elmore, Greene, Hale, Mobile, Morgan, Sumter, and Tallapoosa counties (as of 2/6/23) |
|
Georgia |
1/12/23 |
5/15/23 |
Butts, Crisp, Henry, Jasper, Meriwether, Newton, Pike, Spalding, and Troup counties (as of 2/13/23) |
|
California |
1/8/23 |
5/15/23 |
Alameda, Colusa, Contra Costa, El Dorado, Fresno, Glenn, Humboldt, Kings, Lake, Los Angeles, Madera, Marin, Mariposa, Mendocino, Merced, Mono, Monterey, Napa, Orange, Placer, Riverside, Sacramento, San Benito, San Bernardino, San Diego, San Francisco, San Joaquin, San Luis Obispo, San Mateo, Santa Barbara, Santa Clara, Santa Cruz, Solano, Sonoma, Stanislaus, Sutter, Tehama, Tulare, Ventura, Yolo, and Yuba counties (as of 1/11/23) |
|
New York |
12/23/23 |
4/18/23 |
Erie and Genessee counties (as of 12/29/22) |
|
Florida |
11/7/22 |
3/15/23 |
Alachua, Baker, Bradford, Brevard, Broward, Calhoun, Charlotte, Citrus, Clay, Collier, Columbia, DeSoto, Dixie, Duval, Flagler, Franklin, Gadsden, Gilchrist, Glades, Gulf, Hamilton, Hardee, Hendry, Hernando, Highlands, Hillsborough, Holmes, Indian River, Jackson, Jefferson, Lafayette, Lake, Lee, Leon, Levy, Liberty, Madison, Manatee, Marion, Martin, Miami-Dade, Nassau, Okeechobee, Orange, Osceola, Palm Beach, Pasco, Pinellas, Polk, Putnam, Sarasota, Seminole, St. Johns, St. Lucie, Sumter, Suwannee, Taylor, Union, Volusia, Wakulla, and Washington Counties; the Miccosukee Tribe of Indians of Florida and the Seminole Tribe of Florida (as of 12/23/22) |
|
New York |
11/18/22 |
3/15/23 |
Cattaraugus, Chautauqua, Erie, Genesee, Jefferson, Lewis, Niagara, Oneida, Oswego, St. Lawrence, and Wyoming counties (as of 12/2/2022) |
|
Illinois |
7/25/22 |
2/15/23 |
St. Clair county (as of 11/16/2022) |
*This information is provided for convenience only and is only a partial list of IRS Notices and federally declared disasters. The IRS periodically updates and revises the IRS Notices, which may include changes to the disaster areas and extended dates. Taxpayers should review the information directly on the IRS website for additional IRS Notices and updates and revisions. https://www.irs.gov/newsroom/tax-relief-in-disaster-situations
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