On March 23, FEA joined members of the real estate coalition in sending a letter to Treasury Secretary Steven Mnuchin and other policy makers at the Treasury Department and Internal Revenue Service, requesting guidance to delay the deadlines applicable to like-kind exchanges that are currently underway due to the COVID-19 crisis. The letter specifically requests that deadlines to identify replacement property and/or complete like-kind exchanges should be extended to the later of 120 days or to the last day of the general disaster extension period authorized by an IRS News Release or other guidance, similar to the relief described in section 17 of Rev. Proc. 2018-58 and authorized under Internal Revenue Code Section 7508A.
The signatories include 21 associations representing a broad spectrum of the real estate industry, representing qualified intermediaries, owners, operators, investors, lenders, title insurers and closers, brokers and others touching all asset classes.
In addition, IRS has issued Notice 2020-18, which automatically extends the time for filing of Federal tax returns and payment of Federal income tax payments to July 15, 2020. This notice expands the extension to any taxpayer (including individuals and entities) that have a Federal tax payment or a Federal income tax return due April 15, 2020. Affected Taxpayers do not have to file Forms 4868 or 7004 to receive the extension. There is no limitation on the amount of the payment that may be postponed.
Relief for our 1031 exchange clients is paramount to all of us. The FEA & GAC continue to monitor the situation very closely and will share any information on extensions as soon as it is released.