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IRS Issues 1031 Exchange Timeline Postponements for Disaster Areas

The IRS has issued postponements of the 45-day and 180-day deadlines as follows:

 

Florida Postponement for Hurricane Milton that began on October 5, 2024 (FL-2024-10 10/11/2024).  Covered Disaster Area: Collier, Columbia, DeSoto, Dixie, Duval, Flagler, Gilchrist, Glades, Hamilton, Hardee, Hendry, Hernando, Highlands, Hillsborough, Indian River, Lafayette, Lake, Lee, Levy, Madison, Manatee, Marion, Martin, Miami-Dade, Monroe, Nassau, Okeechobee, Orange, Osceola, Palm Beach, Pasco, Pinellas, Polk, Putman, Sarasota, Seminole, St. Johns, St. Lucie, Sumter, Suwannee, Taylor, Union, and Volusia counties. General postponement date is May 1, 2025

 

Individuals and businesses in six counties that previously did not qualify for relief under either Hurricane Debby or Hurricane Helene will receive disaster tax relief beginning Oct. 5, 2024, and concluding on May 1, 2025. They are Broward, Indian River, Martin, Miami-Dade, Palm Beach and St. Lucie.

 

Individuals and businesses in 20 counties previously receiving relief under Debby, but not Helene will receive disaster tax relief under Hurricane Milton, from Aug. 1, 2024, thru May 1, 2025. They are Baker, Brevard, Clay, DeSoto, Duval, Flagler, Glades, Hardee, Hendry, Highlands, Lake, Nassau, Okeechobee, Orange, Osceola, Polk, Putnam, Seminole, St. Johns and Volusia counties.

 

Virgin Islands Postponement for disasters that began on August 13, 2024 (VI-2024-08 9/10/2024).  Covered Disaster Area St. Croix, St. John, St. Thomas, and Water Island. General postponement date is February 3, 2025.

 

Connecticut Postponement for disasters that began on August 18, 2024 (CT-2024-11 9/10/2024).  Covered Disaster Area: Fairfield, Litchfield, and New Haven counties. General postponement date is February 3, 2025.

 

New York Postponement for disasters that began on August 18, 2024 (NY-2024-01 9/18/2024). Covered Disaster Area Suffolk County. General postponement date is February 3, 2025.

 

Pennsylvania Postponement for disasters that began on August 9, 2024 (PA-2024-02 8/12/2024).  Covered Disaster Area Lycoming, Potter, Tioga, and Union counties. General postponement date is February 3, 2025.

 

Illinois Postponement for disasters that began on July 13, 2024 (IL-2024-01 10/1/2024). Covered Disaster Area: Cook, Fulton, Henry, St. Clair, Washington, Will, and Winnebago counties. General postponement date is February 3, 2025.

 

Florida Postponement for Hurricane Helene that began on September 23, 2024 (FL-2024-08 10/1/2024). NOTE SEE MILTON RELIEF ABOVE. Covered Disaster Area: Alachua, Bay, Bradford, Calhoun, Charlotte, Citrus, Collier, Columbia, Dixie, Escambia, Franklin, Gadsden, Gilchrist, Gulf, Hamilton, Hernando, Hillsborough, Holmes, Jackson, Jefferson, Lafayette, Lee, Leon, Levy, Liberty, Madison, Manatee, Marion, Monroe, Okaloosa, Pasco, Pinellas, Santa Rosa, Sarasota, Sumter, Suwannee, Taylor, Union, Wakulla, Walton, and Washington counties. General postponement date is May 1, 2025.  Note that tax deadlines remain Feb. 3, 2025, for areas of the state that received Debby-related relief, but not Helene-related relief. Currently, this includes the following 20 counties: Baker, Brevard, Clay, DeSoto, Duval, Flagler, Glades, Hardee, Hendry, Highlands, Lake, Nassau, Okeechobee, Orange, Osceola, Polk, Putnam, Seminole, St. Johns and Volusia.

 

Tennessee Postponement for disaster that began on September 26, 2024 (TN-2024-01 10/1/2024).  Covered Disaster Area: Carter, Cocke, Greene, Hamblen, Hawkins, Johnson, Unicoi and Washington counties. General postponement date is May 1, 2025.

 

Virginia Postponement for disaster that began on September 25, 2024 (VA-2024-01 10/1/2024).  Covered Disaster Area: City of Bedford, Bland, Bristol City, Buchanan, Carroll, Covington City, Craig, Danville City, Dickenson, Galax, Giles, Grayson, Montgomery, Norton City, Pittsylvania, Pulaski, Radford, Russell, Scott, Smyth, Tazewell, Washington, Wise, and Wythe counties. General postponement date is May 1, 2025.

 

Alabama Postponement for disaster that began on September 22, 2024 (AL-2024-05 10/1/2024).  Covered Disaster Area: Entire state of Alabama. General postponement date is May 1, 2025

 

North Carolina Postponement for Hurricane Helene that began on September 25, 2024 (NC-2024-08  10/1/2024).  Covered Disaster Area: Entire state of North Carolina. General postponement date is May 1, 2025

 

South Carolina Postponement for Hurricane Helene that began on September 25, 2024 (SC-2024-08 10/1/2024).  Covered Disaster Area: Entire state of South Carolina. General postponement date is May 1, 2025.

 

Georgia Postponement for Hurricane Helene that began on September 24, 2024 (GA-2024-08 10/1/2024).  Covered Disaster Area: Entire state of South Carolina. General postponement date is May 1, 2025.

 

The Covered Disaster Area is the counties or parishes listed above. [Please check the IRS disaster website periodically at the address listed below for updates because the FEA does not send out notices for each disaster or for counties added to ongoing disaster extensions.] 

 

An “Affected Taxpayer” includes individuals who live, and businesses whose principal place of business is located in, the Covered Disaster AreaAffected Taxpayers are entitled to relief regardless of where the relinquished property or replacement property is located. Affected Taxpayers may choose either the General Postponement relief under Section 6 OR the Alternative relief under Section 17 of Rev. Proc. 2018-58. Taxpayers who do not meet the definition of Affected Taxpayers do not qualify for Section 6 General Postponement relief.

Option One

General Postponement under Section 6 of Rev. Proc. 2018-58 (Affected Taxpayers only).

 

Any 45-day deadline or 180-day deadline (for either a forward or reverse exchange) that falls on or after the Disaster Date above is postponed to the General Postponement Date.

 

The General Postponement applies regardless of the date the Relinquished Property was transferred (or the parked property acquired by the EAT) and is available to Affected Taxpayers regardless of whether their exchange began before or after the Disaster Date.

Option Two

Section 17 Alternative (Available to (1) Affected Taxpayers and (2) other taxpayers who have difficulty meeting the exchange deadlines. See Rev. Proc. 2018-58, Section 17 for conditions constituting “difficulty”).

 

Option Two is only available if the relinquished property was transferred (or the parked property was acquired by the EAT) on or before the Disaster Date. Any 45-day or 180-day deadline that falls on or after the Disaster Date is extended to THE LONGER OF: (1) 120 days from such deadline; OR (2) the General Postponement Date.  

Please see Revenue Procedure 2018-58, Section 17, and the Notices shown on https://www.irs.gov/newsroom/tax-relief-in-disaster-situations


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