Skip to main content
A Better Partnership

Publications

Apr 2020
17
April 17, 2020

IRS Provides Coronavirus Relief to Parties in IRC Sec. 1031 “Like-Kind Exchange” Transactions

As described in our recent eAlert available here, the IRS, in Notice 2020-23, provides relief to any person performing certain “Specified Time-Sensitive Actions” as described in IRS Revenue Procedure 2018-58. That Revenue Procedure is available here. In general, these Specified Time-Sensitive Actions include tax elections and other tasks that are due between April 1, 2020, and July 15, 2020. Notice 2020-23 generally postpones the due date of these actions until July 15, 2020.

Internal Revenue Code Sec. 1031 and the accompanying Treasury Regulations include special rules for “deferred like-kind exchanges.” In general, these rules require that replacement property be identified within 45 days after the closing of the sale of the relinquished property, and the replacement property must be purchased within 180 days after the sale of the relinquished property. Revenue Procedure 2018-58 provides that the identification and purchase of replacement property are Specified Time-Sensitive Actions and contains special rules for these transactions. The special rules include additional time extensions for like-kind exchanges, but it is unclear at this time whether the additional relief is applicable or how the deadlines would be calculated under the circumstances.

For more information regarding federal or state tax issues, please contact William Lentine, Jeffrey Segal, Jay Kennedy, Sean Cook or your Warner relationship attorney. The Tax Law Practice Group will continue to monitor federal and state tax issues as they develop.

NOTICE. Although we would like to hear from you, we cannot represent you until we know that doing so will not create a conflict of interest. Also, we cannot treat unsolicited information as confidential. Accordingly, please do not send us any information about any matter that may involve you until you receive a written statement from us that we represent you.

By clicking the ‘ACCEPT’ button, you agree that we may review any information you transmit to us. You recognize that our review of your information, even if you submitted it in a good faith effort to retain us, and even if you consider it confidential, does not preclude us from representing another client directly adverse to you, even in a matter where that information could and will be used against you.

Please click the ‘ACCEPT’ button if you understand and accept the foregoing statement and wish to proceed.

ACCEPTCANCEL

Text

+ -

Reset