1031 Exchange Deadline Can Be Extended Due to COVID-19

Due to the outbreak of of the novel coronavirus (COVID-19) in the United States and Massachusetts, the IRS has issued tax relief Notice 2020-18 pursuant to the President’s issuance of an emergency declaration. The IRS Notice postpones the due date for filing Federal Income Tax returns and for making Federal tax payments to July 15, 2020. Returns and payments were due on April 15, 2020.

This is good news for real estate investors in Massachusetts that are presently engaged in a 1031 exchange transaction. For those real estate investors that are subject to an exchange period deadline of April 15, 2020 it is possible and advised to take advantage of the 90 day extension. If you closed your relinquished property between October 18, 2019 and December 31, 2019, it is now possible for you close close your replacement property by July 15, 2020. If you are an real estate investor and have questions about your transaction, please contact one of our Lynnfield, Boston area real estate lawyers at 781-463-6063.