The IRS Extends Time-Frame To Complete Exchanges and Opportunity Zone Rollovers

Last night, the Internal Revenue Service issued guidance to extend the time permitted to complete a like-kind exchange or rollover into an Opportunity fund.  While the actual IRS notice has not been issued yet (I’m guessing it will come out today) and that will contain more specifics, below are highlights of the relief that is being granted to real estate investors by the IRS as a result of COVID-19:

  • 1031 Like-kind exchange – If an investor is in the midst of 1031 exchange and has already sold the property they owned and the 45-day period to identify the replacement property or the 180-day period to close on the replacement property falls between April 1, 2020, and July 15, 2020, the deadline will be extended to July 15, 2020.
  • Opportunity zone – If an investor has sold a capital asset and plans to roll over the gain from it into a Qualified Opportunity Zone Fund and the 180-day deadline to do so falls between April 1, 2020, and July 15, 2020, the deadline to cmplete the investment will be extended to July 15, 2020.

As I mentioned, the IRS will likely issue written guidance today with more details.  When that happens, I’ll update this post with any pertinent information that it contains.