The IRS is being proactive by extending the time allowance for 1031 exchanges. They are encouraging a revival in this already battered housing market. This may encourage investors to draw residents back as they step in to ease the recovery process.
Woodland Hills, CA (PRWEB) December 1, 2008
The IRS has been put on high alert due to recent wildfires in Southern California. According to Accommodator Finance Company (AFC), plans have been enacted to extend 1031 exchange transaction periods to counties affected by this natural disaster.
A few weeks after Southern California battled devastating wildfires, the IRS has extended the 45-day identification period and 180-day period to acquire a property by an additional 120 days in the affected areas. Plans are in place to expand taxation extensions when deemed appropriate. The wind-blasted wildfires destroyed hundreds of homes, shut down major freeways and forced an eviction of thousands of residents. However, officials are optimistic that the extension program will encourage quick redevelopment of areas affected by the fires.
The extension issued by the IRS from November 13, 2008 currently includes the following counties: Los Angeles, Orange, Riverside and Santa Barbara. Additional counties may be added by the IRS. Property owners near the affected areas should check the disaster announcement website for updates. The FEA will not issue announcements if more counties are added.
Any 45 day or 180 day deadline that falls on or after November 13, 2008 is extended to the later of February 11, 2009, or 120 days from such deadline if a taxpayer meets both criteria:
(1) The taxpayer is located in one of these counties or is otherwise affected, regardless of where the relinquished property or replacement property is located, or otherwise has difficulty meeting the exchange deadlines under Revenue Procedure 2007-56, section 17;
(2) The relinquished property was transferred on or before November 13, 2008.
Kevin Levine, Vice President of AFC, states, "The IRS is being proactive by extending the time allowance for 1031 exchanges. They are encouraging a revival in this already battered housing market. This may encourage investors to draw residents back as they step in to ease the recovery process."
Accommodator Finance Company (http://www.accommodator.net/) is a leading nationwide provider in Tax Deferred 1031 Exchange Services. Services include all like-kind exchanges in accordance with IRC §1031 including delayed, reverse, improvement and personal property exchanges. The company is a Qualified Intermediary and is a member of the Federation of Exchange Accommodators.