PLEASE NOTE: To protect your safety in response to the threats of Covid-19, we are offering our clients the ability to meet with us in-person, via telephone, or through video conferencing. Please call our office to discuss your options.
Polizzotto & Polizzotto
Call Us Today
347-462-0510 | 718-213-4861
Founded Over 40 Years Ago

IRC Section 1031 Real Estate Exchanges: COVID-19 Impact

Real Estate IRC Sec. 1031 exchanges today are very common. With respect to completing a successful 1031 exchange and deferral, there are stringent timelines for forward exchanges. Here are a few relevant timed deadlines:

  • Within 45 days of the sale of relinquished real estate property, replacement property must be identified.
  • Within 180 days of the sale of relinquished property, replacement real estate property must be acquired.

In Rev. Proc. 2007-56, the IRS sets forth guidelines in which some of these deadlines can be extended. In the event that the investors are affected by a federally declared disaster, act of terror or military action, an extension of time is provided. In order to be granted an extension, the IRS either needs to issue a notice or other guidance to provide relief.

Please be aware that as of the date of this post (3/31/2020), the IRS has yet to issue a notice and it is unclear whether President Trump declaring disaster zones for states is sufficient.

If a notice is issued, the timeline for the exchange is extended by the later of 120 days or the date in the IRS tax relief notice, but not beyond the due date (including extensions) for filing the tax return for the year of transfer or one year.

In order for Rev. Proc. 2007-56 to apply, the following as well as other qualifications must be met:

  1. The relinquished property must have been transferred on or before the date of the federally declared disaster AND the exchanger must be an affected taxpayer as defined OR have difficulty meeting the exchange deadlines due to one of the disaster reasons indicated in the revenue procedure.
  2. The exchange agreement must also explicitly provide for an extension in the event of a federally declared disaster.

Please contact our offices for assistance with your real estate transactions and closings.

No Comments

Leave a comment
Comment Information
Contact us today

Contact Our Law Offices

Give our attorneys the opportunity to demonstrate the personal, professional attention that we offer each client. Call 347-462-0510 or contact us online today.

Contact the Firm

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.


Privacy Policy

Connect With Us

Leap Portal

Brooklyn Office
6911 18th Avenue
Brooklyn, NY 11204

Phone: 347-462-0510
Fax: 718-256-0966
Brooklyn Law Office Map

Manhasset Office
1129 Northern Blvd #404
Manhasset, NY 11030

Phone: 347-462-0510
Fax: 718-256-0966
Map & Directions