1031 exchanges are an effective means of bringing idle properties to the marketplace and helping real estate investors acquire more suitable properties. The IRS extension period will allow real estate investors an opportunity to find new properties and revive distressed communities across the region.
Woodland Hills, CA (PRWEB) September 10, 2008
Accommodator Finance Company (http://www.accommodator.net), a leading nationwide 1031 Exchange firm reports that the IRS has issued a notice of extension for 36 Louisiana parishes in response to Hurricane Gustav.
The IRS has been put on high alert due to the active hurricane season and has enacted plans to extend 1031 exchange transaction periods on a case by case basis.
After hurricane Gustav made landfall in Louisiana, the IRS allowed extensions to the 45 days and 180 days as long as the following criteria were met:
- The taxpayer is located in one of these parishes or is otherwise an affected taxpayer as defined in the Notice, regardless of where the relinquished property or replacement property is located, or otherwise has difficulty meeting the exchange deadlines under the conditions in Revenue Procedure 2007-56, section 17; AND
- The relinquished property was transferred (or the parked property was acquired by the EAT in a reverse exchange under Revenue Procedure 2000-37) on or before September 1, 2008.
If the taxpayer meets these criteria, THEN any 45 day or 180 day deadline that falls on or after September 1, 2008, is extended to the later of January 5, 2009, or 120 days from such deadline.
Tax officials are now keeping a close eye on Hurricane Ike which is expected to strike the Gulf coast in the coming days and further expand taxation extensions when deemed appropriate. Brenda Rosado, of Accommodator Finance states, "1031 exchanges are an effective means of bringing idle properties to the marketplace and helping real estate investors acquire more suitable properties. The IRS extension period will allow real estate investors an opportunity to find new properties and revive distressed communities across the region."
The last time the IRS reacted on such magnitude was after the devastating California wildfires of 2007. Before that, officials stepped in after hurricane Katrina devastated the coastal areas of Alabama, Mississippi, and Louisiana.
Rosado adds, "The IRS is being proactive by extending the time allowance for 1031 exchanges thereby encouraging a revival in this distressed real estate market. Investors are looking to draw residents back as they step in to fill the void in available housing across the region."