Deadlines falling between April 1, 2020 and July 15, 2020 for certain time-sensitive actions have been automatically extended to July 15.  In a 1031 tax free exchange, the extension applies to the 45-day identification period and the 180-day exchange period.  The extension also applies to the 180 day deadline for an opportunity zone investment.  To read IRS Notice 2020-23, see below.

The extensions granted in Notice 2020-23 are automatic and do not require the filing of any extension forms. If additional time is needed beyond July 15, 2020, taxpayers can file the appropriate extension forms. The extensions do not apply to deadlines or time periods ending prior to April 1, 2020.

Every taxpayer’s situation is different.  We encourage you to read Notice 2020-23 and to contact a member of the commercial real estate group at Buist Byars and Taylor or consult with your tax advisor should you have any questions.

In response to the continuing  COVID-19 pandemic, on April 9, 2020, the IRS issued Notice 2020-23, further expanding tax relief provided in Notices 2020-18 and 2020-20. Notice 2020-23 extends compliance deadlines for taxpayers for certain “Specified Time-Sensitive Actions” including:

• The 45-day identification period and the 180-day exchange period applicable to taxpayers participating in like-kind exchanges to defer capital gains tax on the sale of real property under Section 1031 of the Internal Revenue Code. Pursuant to Notice 2020-23, if the exchanging taxpayer’s 45-day identification period falls between April 1, 2020 and July 15, 2020, the period is extended until July 15, 2020. Similarly, if the expiration of the exchanging taxpayer’s 180-day exchange period falls between April 1, 2020 and July 14, 2020, the period is extended until July 15, 2020.
• The 180-day investment period applicable to a taxpayer seeking to elect to defer gain by investing a Qualified Opportunity Fund.