As a result of the severe winter storm that hit California in early January and caused flooding and mudslides, the Internal Revenue Service has given taxpayers transacting a 1031 exchange two deadline extension options.
Affected taxpayers include individuals who live and businesses whose principal place of business is located in the following California counties: Alameda, Butte, Calaveras, 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, Siskiyou, Solano, Sonoma, Stanislaus, Sutter, Tehama, Trinity, Tulare, Ventura, Yola, Yuba.
The first deadline extension option is general postponement under Section 6 of Rev.Proc. 2018-58, which postpones any 45-day or 180-day deadline falling on or after the Disaster Date to the General Postponement date. The general postponement date is now October 16, 2023.
The second option is only available if the relinquished property was transferred on or before the Disaster Date and extends any 45-day or 180-day deadline falling on or after the Disaster Date to the longer of 120 days from such deadline or the General Postponement Date.
1031 exchanges can be a beneficial investment tool but can cause stress to taxpayers because of tight deadlines. This extension until October provides an enormous opportunity for eligible California residents that are currently in the middle of a 1031 exchange or planning to start one in the near future.
If you’re considering a 1031 investment in 2023, I have a wide range of options to help you find the best loan terms and rate. Get in touch with me today if you’re interested in learning more about the services I provide through Gantry.