IRS Extends Deadlines for Like-Kind Exchanges, Qualified Opportunity Zone Investments

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On April 9, 2020, the Internal Revenue Service issued Notice2020-23 extending certain deadlines provided by the Internal Revenue Code fortaxpayers either engaging in Section 1031 like-kind exchanges or makinginvestments in Qualified Opportunity Zone Funds.Taxpayerswho have recently sold real property or intend to sell real property in thenear future may have additional time to identify and acquire suitablereplacement property to complete their Section 1031 like-kind exchanges.Taxpayers for whom the last day of their 45-day identification period or180-day exchange period is between April 1, 2020, and July 15, 2020, (the“disaster period”) are eligible for automatic deferral of such deadlines.Additionally, taxpayers utilizing “parking arrangements” for reverse orimprovement exchanges are also eligible for automatic deferral of deadlinesrelated to such exchanges as set out in Revenue Procedure 2000-37 which fallwithin the disaster period. Any such deadline for Section 1031 like-kindexchanges is deferred until at least July 15, 2020, and perhaps longer based onthe taxpayer’s individual circumstances.Similarly,taxpayers also have more time to reinvest proceeds from recently sold propertyinto Qualified Opportunity Zone Funds. Any taxpayer whose 180-day period (forreinvesting proceeds from the sale of applicable property into QualifiedOpportunity Zone Fund) ends within the disaster period has until July 15, 2020,to invest in a Qualified Opportunity Zone Fund.Notice2020-23 also extends the deadlines of many tax forms and other code provisionsto July 15, 2020. 



 


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