Our Chief Executive Officer, David Wieland, just published a piece on LinkedIn, entitled "1031 Exchanges and COVID-19." The piece is an extended explanation of our recent letter to the United States Secretary of the Treasury Steven Mnuchin urging the Treasury Department and Internal Revenue Service to delay the deadline for like-kind (IRC §1031) exchanges.
"As you know, meeting the requirements of a 1031 exchange in normal time is a monumental task," David explains. "During COVID-19, shelter-in-place rules have prevented buyers from traveling to establish funding and have hampered the extensive due diligence process for the buyer, lender, third-party contractors, title/escrow companies, and recording offices. The current external environment has made every step in the 1031 exchange process nearly impossible."
In this article, David further explains the precedent for the extension request and its limits, even if it is granted. Read the rest of the article on LinkedIn.
UPDATE: On Wednesday, March 25, 2020, we issued a letter to the United States Secretary of the Treasury Steven Mnuchin, urging the Treasury Department and Internal Revenue Service to delay the deadline for like-kind (IRC §1031) exchanges. On Thursday evening, April 9, the IRS released Notice 2020-23 as an update to Notice 2020-18, which provided relief to taxpayers affected by COVID-19. Thursday’s notice extended the taxpayer relief to like-kind exchanges, allowing investors whose identification or exchange periods would have fallen between April 1st and July 15th to now use July 15th as their extension deadline. Learn more about this update here.
We are grateful for the extension and appreciative to the Secretary of the Treasury, the Treasury Department, and the Internal Revenue Service for their willingness to provide accommodations for investors transacting a 1031 exchange. For those who are in need of assistance with their exchange, we stand ready and willing to help you identify like-kind property alternatives during this extended deadline. Please reach out to us at 877-797-1031.