WASHINGTON, D.C. -- On April 6th, Congressman Russ Fulcher led the attached letter to Treasury Secretary Steve Mnuchin explaining the need for extensions to the 1031 exchange timeline. These exchanges allow buyers and sellers of Real Property to defer taxes on capital gains, provided these transactions are executed within a specific timeline.
On April 10th, the IRS announced in the attached notice 2020-23 that this extension has been granted.
“As you may know, both residential and commercial property transactions in Idaho were at a record high before the outbreak of Covid-19,” wrote Congressman Fulcher. “Taxpayers throughout Idaho who entered into or are contemplating these exchanges have contacted me with serious concerns about not being able to comply with the statutory 45-day or 180-day requirements for identifying and closing on a replacement property. Without relief in the form of a delay in meeting the requirements, these Americans could find themselves losing out on the tax deferral they planned on when executing the transaction, and this could lead to serious financial hardship in many cases, not to mention an adverse impact on the economy.”
With continuing disruptions to the real estate industry, this timeline extension will encourage real estate investments, and the many jobs they support, to continue.