Treasury Extends Pandemic-Related Relief to 1031 Transactions, Qualified Opportunity Fund Investments

April 14, 2020

In response to the ongoing coronavirus pandemic, the Treasury recently released Notice 2020-23, which provides procedural relief to persons engaged in 1031 transactions and those investing in Qualified Opportunity Funds, among others.

The notice, published April 10, extends the deadline until July 15, 2020 for any person required to perform certain “time-sensitive acts” under the internal revenue laws.

The list of affected time-sensitive acts includes:

• The 45-day identification period for 1031 exchanges and reverse exchanges.

• The 180-day period to acquire replacement property in a 1031 exchange (or to sell relinquished property in a reverse exchange).

• The 180-day period to invest “qualified gains” in a Qualified Opportunity Fund in order to receive tax benefits under the Qualified Opportunity Zone provisions.

If the deadline to perform the time-sensitive act expired, or would otherwise expire, between April 1, 2020 and July 15, 2020, the act will be treated as timely if performed no later than July 15, 2020.

Please contact us if you would like to discuss how the application of these measures apply to you:

Louis Tuchman at +1 212 592 1490 or [email protected]

© 2020 Herrick, Feinstein LLP. This information is provided to keep clients and interested parties informed of legal developments that may affect or interest them. The information is not intended as legal advice or legal opinion and should not be construed as such.