On April 9, 2020, the IRS issued Notice 2020-23 providing additional short term relief for taxpayers affected by the COVID-19 Pandemic. The IRS notice states that it provides “additional time to perform certain time-sensitive actions” that includes granting deadline relief for both 1031 like-kind exchanges and opportunity zone investments that are already underway.
With the notice the IRS extended the 45-day identification period and the 180-day exchange period for taxpayer/exchangers whose deadlines were due on or after April 1, 2020. The deadlines for those exchangers to identify replacement property and/or acquire replacement property are now July 15, 2020. It is important to note that there is no retroactive effect if the 45-day identification deadline and 180-day exchange period were before April 1, 2020.
In addition, taxpayers facing a 180-day deadline expiration on or after April 1 to invest capital gains into an Opportunity Fund now have until July 15 to make such an investment.
This alert does not purport to be a substitute for advice of counsel on specific matters. Should you have any questions or concerns, please feel free to contact us, we are here to assist!
