More good (tax) news for Hurricane-affected taxpayers

More good news (tax-wise) for hurricane-affected taxpayers

Hurricanes continue to plague Florida and the eastern United States, and our hearts go out to those of you who have been affected by them.

One small bit of good news is that the IRS continues to recognize the effects of the hurricanes upon the affected areas, and has offered taxpayers more relief from deadlines as a result. Due to the widespread nature of the storms, tax relief now applies to taxpayers in parts of Florida, Alabama, Louisiana, Mississippi, Georgia, North Carolina, Pennsylvania, Virginia, and West Virginia.

In the 1031 exchange context, this relief includes an extension of time to complete identification of replacement property (which normally must be completed 45 days after the closing of the sale of relinquished property) and to complete (close) the purchase of replacement property (which normally must be completed 180 days from the relinquished property sale closing).

We again note that the exact details of the relief offered from the IRS are unclear. Generally, this relief applies if your principal residence is located in a Presidentially Declared Disaster Area, but the IRS also has the power to include other persons affected by the disaster within the relief offered. If you have specific questions about how the relief provisions work, or about eligibility for the relief, The Experts are available to help answer any questions we can. We also strongly recommend that any affected taxpayer consult with a legal or tax advisor prior to making any decisions affecting tax payment (including the effect of the relief on specific 1031 exchanges).

--The Experts