Federally Declared Disaster Extensions for 1031 Exchanges

If a federally declared disaster impacts your 1031 exchange, you may qualify for an extension on the standard 45-Day Identification and 180-Day Exchange Period deadlines. Postponements are not automatic and apply only when the IRS issues a Notice or News Release listing affected areas. Please check the IRS website for updates. Postponements are available for both reverse and delayed exchanges. 

Who is Eligible for a Postponement? 

1. Affected Taxpayer: Defined under IRS regulations, including those living in or with a business in a disaster area, regardless of the location of the exchange properties. Relief workers assisting in the disaster area may also qualify. 

2. Other Taxpayers Facing Difficulties: Even if not directly in the disaster area, you may qualify if:

• The relinquished or replacement property is in a covered disaster area. 
• Any party involved in the exchange (qualified intermediary, settlement attorney, lender, etc.) is located in the covered disaster area. 
• A key party is injured, missing, or killed due to the disaster. 
• Important documents or records are destroyed by the disaster. 
• A lender refuses funding due to disaster-related issues. 
• A title insurance company is unable to provide the necessary policy. 
  

Timeline Extensions

If eligible, under Revenue Procedure 2018-58, you will receive the longer of two options: 

1. A 120-day extension from the original deadline, or 
2. The deadline date specified in the IRS's General Postponement for the disaster.

Visit our website for a list of the most recent disaster extensions. 

Please contact your 1031 CORP. Exchange Officer immediately if you believe your exchange may be affected. Early communication is crucial, especially if the disaster area isn’t where your properties are located.