1031 Exchange Timeline Extensions - What Are They & How Do They Apply to Your Transaction Timeline

If you're familiar with 1031 exchanges, you know that they come with strict timelines. You have 45 days from the date of your property sale to identify replacement properties, and 180 days to complete the exchange. Failure to meet these deadlines can result in significant tax consequences. However, Revenue Procedure 2018-58 permits extensions of these deadlines to certain taxpayers affected by federally declared disasters!

So, what does this mean for you and your Exchange? To answer that question, we sat down with David and Tom Moore, 1031 gurus with years of experience helping investors navigate the intricacies of these Exchanges.

First, let's talk about what a federally declared disaster is. This is a natural catastrophe, such as a hurricane, tornado, flood, or wildfire, that the president declares a major disaster under the Robert T. Stafford Disaster Relief and Emergency Assistance Act. In other words, it's a widespread event that causes significant damage and disruption.

If you've been affected by a federally declared disaster and are in the middle of a 1031 Exchange, you may be eligible for an extension of your identification and exchange periods. David and Tom explain that the extension can be up to 120 days for both periods, but you must meet certain criteria to qualify.

First, you must be located in a disaster area designated by the Federal Emergency Management Agency (FEMA). Second, you must have either sold the relinquished property, acquired the replacement property, or identified the replacement property on or before the date of the disaster. Third, you must be unable to complete the exchange within the original timelines due to the disaster.

If you're in the middle of a 1031 Exchange and have been affected by a federally declared disaster, it's worth exploring whether you're eligible for an extension of your identification and exchange periods. Contact a qualified intermediary or tax advisor to discuss your specific situation and determine the best course of action. And as always, consult with a tax advisor or attorney to ensure that you understand the full implications of any decisions related to your exchange.

WEBSITE
-----------
http://www.1031exchange.com
http://www.iraadvantage.net

1031 EXCHANGE FAQ
-------------------------------
http://www.1031exchange.com/faq/

SOCIAL MEDIA
-----------------
Linkedin: https://www.linkedin.com/company/484108
Google+: https://plus.google.com/+EquityAdvantageIncorporatedPortland
Facebook: https://www.facebook.com/EquityAdvantage
Twitter: https://twitter.com/Barterbro
Instagram: https://www.instagram.com/equity_advantage/
Youtube: https://www.youtube.com/channel/UCbyThSCgw2mJwyIn30aCVEg

VISIT MY BLOG
----------------------
http://www.1031exchange.com/category/blogcasts/

Disclaimer: All my opinions are my own. These statements are not meant to be taken as investment advice.