{"id":27279,"date":"2020-03-16T12:20:12","date_gmt":"2020-03-16T16:20:12","guid":{"rendered":"https:\/\/www.affiliated1031.com\/how-the-covid-19-coronavirus-emergency-affects-1031-exchange-deadlines\/"},"modified":"2020-03-16T12:20:12","modified_gmt":"2020-03-16T16:20:12","slug":"how-the-covid-19-coronavirus-emergency-affects-1031-exchange-deadlines","status":"publish","type":"post","link":"https:\/\/www.affiliated1031.com\/es\/how-the-covid-19-coronavirus-emergency-affects-1031-exchange-deadlines\/","title":{"rendered":"How COVID-19 Affects 1031 Exchange Deadlines"},"content":{"rendered":"<div  class=\"tatsu-h6ut5tem9i22rkhp tatsu-section  tatsu-bg-overlay   tatsu-clearfix\" data-title=\"\"  data-headerscheme=\"background--dark\"><div class='tatsu-section-pad clearfix' data-padding='{\"d\":\"15px 0px 15px 0px\"}' data-padding-top='15px'><div class=\"tatsu-row-wrap  tatsu-wrap tatsu-row-one-col tatsu-row-has-one-cols tatsu-medium-gutter tatsu-reg-cols  tatsu-clearfix tatsu-h6ut5tembgqekf2\" ><div  class=\"tatsu-row \" ><div  class=\"tatsu-column  tatsu-bg-overlay tatsu-one-col tatsu-column-image-none tatsu-column-effect-none  tatsu-h6ut5temdjazklt4\"  data-parallax-speed=\"0\" style=\"\"><div class=\"tatsu-column-inner \" ><div class=\"tatsu-column-pad-wrap\"><div class=\"tatsu-column-pad\" ><div  class=\"tatsu-module tatsu-text-block-wrap tatsu-h6ut5temf16h2489  \"><div class=\"tatsu-text-inner tatsu-align-center  clearfix\" ><style>.tatsu-h6ut5temf16h2489.tatsu-text-block-wrap .tatsu-text-inner{width: 100%;text-align: left;}<\/style>\n<p><span style=\"font-weight: 400;\">CAN THE GOVERNMENT GIVE AN EXTENSION TO THOSE PARTIES IN A SECTION <a title=\"Link to 1031 Exchange Wikipedia\" href=\"https:\/\/en.wikipedia.org\/wiki\/Internal_Revenue_Code_section_1031\" target=\"_blank\" rel=\"noopener noreferrer\">1031 EXCHANGE<\/a> AS A RESULT OF THE CORONAVIRUS?<\/span><\/p>\n<p><strong>Yes. Federal law permits the IRS to grant taxpayers affected by a federally declared disaster additional time to perform certain time-sensitive acts<\/strong><\/p>\n<p><span style=\"font-weight: 400;\">As most of our readers are aware, the taxpayer has<a title=\"Link to 1031 Exchange Timelines\" href=\"https:\/\/liberty1031.com\/what-is-a-1031-exchange\/1031-exchange-timelines\/\" target=\"_blank\" rel=\"noopener noreferrer\"> 45 days<\/a> from the day of closing to Identify possible Replacement Properties and has up to <a title=\"Link to 1031 Exchange Timelines\" href=\"https:\/\/liberty1031.com\/what-is-a-1031-exchange\/1031-exchange-timelines\/\" target=\"_blank\" rel=\"noopener noreferrer\">180 days<\/a> from the day of closing to consummate a Replacement Property transaction.\u00a0\u00a0<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">When Can IRS Change 1031 Exchange Deadlines?<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Under certain circumstances, the IRS may postpone the 45 day identification period and the 180 day exchange period under I.R.C. Section 1031(a)(3) for tax-deferred exchanges.\u00a0 More specifically, Section 17 of Rev. Proc. 2007-56 provides certain postponement procedures that will apply to a \u201c<strong>Federally Declared Disaster.<\/strong>\u201d\u00a0\u00a0<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">Definition of \u00abDisaster\u00bb<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">The definition presently used for a \u201cdisaster\u201d is a natural catastrophe, which includes hurricanes, tornadoes, earthquakes, high waters, wind-driven waters, droughts, mudslides or snowstorms or regardless of cause, any fire, explosion, or flood, in any part of the United States, which in the determination of the President of the United States, causes damage of sufficient severity and magnitude to warrant major assistance to supplement the efforts and available resources of states, local governments, and disaster relief organizations in order to alleviate the damage, loss, hardship, or suffering caused thereby [See: 45 U.S.C.A. Section 5122(2)].<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u00a0It would seem that the Novel Coronavirus Pandemic has and will cause major damages to many parts of the United States.\u00a0 Further, most state and local governments, as well as relief organizations, will need assistance to help alleviate the damages, losses, hardship, and suffering as a result.\u00a0\u00a0<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">Has a Disaster Been Declared?<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Has the President of the United States signed a federally declared disaster order that would cover Section 1031 exchanges and the parties involved?\u00a0 Unfortunately, the answer is <strong>NO he has not.<\/strong><\/span><\/p>\n<p><span style=\"font-weight: 400;\">On Friday, March 13, 2020, the President of the United States signed a <\/span><b>National Emergency Order<\/b><span style=\"font-weight: 400;\"> which grants considerable powers to give certain assistance but <strong>does not explicitly cover 1031 Exchange deadlines.<\/strong><\/span><\/p>\n<p><span style=\"font-weight: 400;\">Obviously, he has his hands full trying to make sure that medical testing and medical facilities are available.\u00a0 But, hopefully, within the next week, he will see fit to sign a <\/span><b>federally declared disaster order,<\/b><span style=\"font-weight: 400;\"> which would cover Section 1031 tax-deferred exchanges.\u00a0\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">We will keep you updated on any Federal government actions or orders that may affect timelines or any other aspect of 1031 Exchange transactions.<\/span><\/p>\n<p>Here&#8217;s a link to a case study we published on <a title=\"Link to Disaster Relief and 1031 Exchanges\" href=\"https:\/\/liberty1031.com\/liberty-1031-exchange-case-studies\/\" target=\"_blank\" rel=\"noopener noreferrer\">Diaster Relief and 1031 Exchanges.<\/a><\/p>\n<p>\u00a0<\/p>\n<\/div><\/div><\/div><\/div><div class = \"tatsu-column-bg-image-wrap\"><div class = \"tatsu-column-bg-image tatsu-bg-lazyload\" data-src = \"\"><\/div><\/div><div class=\"tatsu-overlay tatsu-column-overlay tatsu-animate-none\" ><\/div><\/div><style>.tatsu-row > .tatsu-h6ut5temdjazklt4.tatsu-column{width: 100%;}.tatsu-h6ut5temdjazklt4.tatsu-column > .tatsu-column-inner > .tatsu-column-overlay{mix-blend-mode: normal;}.tatsu-h6ut5temdjazklt4 > .tatsu-column-inner > .tatsu-top-divider{z-index: 9999;}.tatsu-h6ut5temdjazklt4 > .tatsu-column-inner > .tatsu-bottom-divider{z-index: 9999;}.tatsu-h6ut5temdjazklt4 > .tatsu-column-inner > .tatsu-left-divider{z-index: 9999;}.tatsu-h6ut5temdjazklt4 > .tatsu-column-inner > .tatsu-right-divider{z-index: 9999;}<\/style><\/div><\/div><\/div><\/div><div class=\"tatsu-section-background-wrap\"><div class = \"tatsu-section-background tatsu-bg-lazyload\" data-src = \"\"><\/div><\/div><div class=\"tatsu-overlay tatsu-section-overlay\"><\/div><style>.tatsu-h6ut5tem9i22rkhp .tatsu-section-pad{padding: 15px 0px 15px 0px;}.tatsu-h6ut5tem9i22rkhp > .tatsu-bottom-divider{z-index: 9999;}.tatsu-h6ut5tem9i22rkhp > .tatsu-top-divider{z-index: 9999;}.tatsu-h6ut5tem9i22rkhp .tatsu-section-overlay{mix-blend-mode: normal;}<\/style><\/div>\n","protected":false},"excerpt":{"rendered":"<p>Can the government give an extension to those parties in a section 1031 exchange as a result of the coronavirus?<\/p>\n<div><a href=\"https:\/\/www.affiliated1031.com\/es\/how-the-covid-19-coronavirus-emergency-affects-1031-exchange-deadlines\/\" class=\"exp-read-more exp-read-more-underlined\">Read More<\/a><\/div>\n","protected":false},"author":1,"featured_media":26991,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_coblocks_attr":"","_coblocks_dimensions":"","_coblocks_responsive_height":"","_coblocks_accordion_ie_support":"","footnotes":""},"categories":[57],"tags":[],"class_list":["post-27279","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-1031-exchange-basics-es"],"_links":{"self":[{"href":"https:\/\/www.affiliated1031.com\/es\/wp-json\/wp\/v2\/posts\/27279","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.affiliated1031.com\/es\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.affiliated1031.com\/es\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.affiliated1031.com\/es\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.affiliated1031.com\/es\/wp-json\/wp\/v2\/comments?post=27279"}],"version-history":[{"count":0,"href":"https:\/\/www.affiliated1031.com\/es\/wp-json\/wp\/v2\/posts\/27279\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.affiliated1031.com\/es\/wp-json\/wp\/v2\/media\/26991"}],"wp:attachment":[{"href":"https:\/\/www.affiliated1031.com\/es\/wp-json\/wp\/v2\/media?parent=27279"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.affiliated1031.com\/es\/wp-json\/wp\/v2\/categories?post=27279"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.affiliated1031.com\/es\/wp-json\/wp\/v2\/tags?post=27279"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}