IRS Extends 1031 Deadlines

April 22, 2020

During these challenging times, it is hard to keep track of all the changes that are taking place on a daily basis. One such change we wanted to make sure you’re aware of is the temporary change to the time-frame surrounding 1031 exchanges.

The IRS has announced that, if someone had taken the first step in the 1031 process and their deadline falls in between April 1 and July 15, they automatically have until July 15 to wrap up the exchange process. This should provide some relief in the Central Illinois land market for those who were in the midst of a search or sale process that was disrupted by the COVID-19 pandemic.

The 1031 process is commonly used in agriculture and other real estate investments. Typically, once someone sells an existing property, they have 45 days from the closing to identify three possible “like kind” properties and 180 days to close on one of the properties. More information can be found here.

As always, if your 1031 clock is ticking, we would be glad to help you locate a replacement property. Just give us a shout at 217.245.1618.