1031 Exchange Deadlines Extended for Taxpayers Affected by August Floods in Louisiana

The IRS has released Bulletin LA-2016-20, which can be found at https://www.irs.gov/uac/tax-relief-for-victims-of-severe-storms-flooding-in-louisiana.

The IRS has extended the 45 day identification period and 180 day exchange periods that fall on or after August 11, 2016. The extension also applies if the 45 day identification period expired prior to August 11, 2016, but the identified property was “substantially damaged” by the disaster. The deadlines are extended 120 days or until January 17, 2017; whichever is last to occur. In order to qualify for the extended deadline, the following criteria must be met:

(1) the liquidated property must have been transferred on or before August 11, 2016; and

(2) the taxpayer must be an “affected taxpayer” as defined by the IRS or have difficulty meeting the deadlines due to the disaster.

The covered disaster area for purposes of the 1031 deadline extension currently includes the following parishes: Acadia, Ascension, Avoyelles, East Baton Rouge, East Feliciana, Evangeline, Iberia, Iberville, Jefferson Davis, Lafayette, Livingston, Point Coupee, St. Helena, St. Landry, St. Martin, St. Tammany, Tangipahoa, Washington, West Feliciana, and Vermillion. It’s important to continue to check the bulletin for the possible addition of new parishes in the covered area. If you are currently involved in an exchange you should consult your tax and legal advisors to determine if you qualify for the extension.