Many of our clients are contacting us regarding the status of their 1031 exchanges due to the ongoing measures being implemented in response to the COVID-19 pandemic. We are monitoring the situation closely and wanted to provide an update to our clients regarding the status of exchanges overall and of our company.
Extensions
* Update 4/13/20: On 4/9/20 the IRS released a notice that indicated that all 1031 exchange deadlines that fell between April 1st and July 15th are now extended to July 15th. Click here for more information.
The primary question we have been asked in these past few weeks is whether there will be extensions granted by the IRS for the 45-day and 180-day deadlines. At this time, the IRS has not announced any extensions for 1031 exchanges, so all deadlines remain the same until they do, if so. Twenty-one real estate trade associations have submitted a letter to the Treasury Department requesting an extension (click here to view the letter). We are hoping they will heed this request since the ongoing pandemic has created a significant disruption in the real estate market for both buyers and sellers.
Realty Exchange Corporation
At this time we are preparing our company to operate remotely. We will continue to work to help our clients with their exchanges as best we can, however, please be aware that operating remotely may cause some delays. Cooperation with banks and settlement agents is essential for our business, but should they close or curtail their operations, our operations will likely be affected as well.
We appreciate your patience as we all adapt to the changes occurring and we look forward to returning to business as usual as soon as it is safe to do so.