Unsurpassed Expertise, Security and Service for Your § 1031 ExchangeEquipEx is now Exchange Resource Group (ERG): same Qualified Intermediary excellence with greater combined expertise and nationwide capabilities! Certified Exchange Specialist® on staff • Dedicated, signature-locked accounts • Cyber-fraud insurance
April 10, 2020
TIME EXTENSIONS FOR 1031 EXCHANGES UNDER IRS NOTICE 2020-23
To our valued clients and partners:
Amidst this challenging and unprecedented time, we are pleased to share some good news with you. On the afternoon of April 9, the IRS issued guidance (Notice 2020-23) providing time-constraint relief for Section 1031 Like-Kind Exchanges. Under this deadline extension language, it appears that any 45-day or 180-day deadline occurring between April 1 and July 14 will be extended to July 15, 2020.
Example 1: For a 1031 Exchange that began on April 1st, 2020, the 45-Day Identification Period Deadline would normally be May 16th. Under the Notice, this deadline is extended to July 15th, 2020. The Exchanger must still close on all replacement property by Day 180 of their Exchange (the Exchange Period Deadline), which is September 28th, because this date falls after the July 15th ending date of the disaster period.
Example 2: For a 1031 Exchange that began on December 15th, 2019, Day 45 was January 29th. This ID Period Deadline is not extended because it fell prior to April 1st. Although their 180-day Exchange Period Deadline falls on June 12th, the Exchanger receives an extension under the Notice to July 15th.
1031 Exchanges are designed to promote economic growth throughout the country and in our communities. Thankfully, the IRS has determined that investors utilizing this beneficial section of the Internal Revenue Code to make real property reinvestments while deferring tax liabilities should receive some consideration concerning the impact of the COVID-19 pandemic. As with other pandemic-related information, guidance here is not comprehensive and may not be final.
We will share new information as we receive it. Please know that we remain at your service, and wish you and yours all the best!
Sincerely,Ken Palmen and the ERG Team
As a dedicated Qualified Intermediary (QI) for Section 1031 Like-Kind Exchanges, we deliver complete confidence for your 1031 Exchange! We offer personalized service and expertise, including a Certified Exchange Specialist® on staff. We’re located in the Denver, Colorado area and assist U.S. taxpayers everywhere in completing these valuable Exchanges.
Set up a Free 1031 Exchange Consultation! We’re happy to answer your questions & let you know how we can help you achieve “More Cash, Less Tax” when you’re ready to make a real estate reinvestment. Please call (303) 579-5545, visit our Contact Us page, or email .
By properly completing a 1031 Exchange (aka 1031, Starker Exchange, Tax-Deferred Exchange, Like-Kind Exchange or LKE), any U.S. taxpayer may completely defer tax, improve cash flow and add value over time when replacing or upgrading a wide range of business-use or investment properties:
• commercial buildings
• retail complexes
• rentals including single- or multi-family, destination properties, apartments, condominiums and student housing
• industrial and warehouse facilities
• water, mineral and even air rights (as applicable, based on state law)
• raw land
• long-term leasehold interests
• fractional ownership investments in Tenant In Common and/or Delaware Statutory Trust structures
When you defer taxes (potentially indefinitely thru an ongoing series of 1031 Exchanges and estate transfer), more money stays in your hands. Cash flow improves; ultimately contributing to greater wealth potential and a healthier bottom line or higher-value portfolio!
Located in metropolitan Denver, Colorado, ERG facilitates all types of IRC Section 1031 Like-Kind Exchanges for c-corporations, s-corporations, LLCs, sole proprietorships, partnerships, families and individuals. ERG cannot and does not provide tax advice. Please consult with your tax and legal professionals regarding your particular situation and objectives before participating in an IRC Section 1031 Like-Kind Exchange.
Here’s a sampling of what our past and returning clients have to say about us:
“I’ve experienced firsthand the superior level of care & coordination that EquipEx provides to clients, as compared to other Qualified Intermediaries.”Anthony H.
“With the assistance of EquipEx we helped a seller of a portable storage company defer a substantial part of his tax liability in a swift and efficient manner.”Anders N.
Certified Exchange Specialist® on staff.
“Washington state law, RCW 19.310.040, requires an exchange facilitator to either maintain a fidelity bond in an amount of not less than one million dollars that protects clients against losses caused by criminal acts of the exchange facilitator, or to hold all client funds in a qualified escrow account or qualified trust that requires your consent for withdrawals. All exchange funds must be deposited in a separately identified account using your taxpayer identification number. You must receive written notification of how your exchange funds have been deposited. Your exchange facilitator is required to provide you with written directions of how to independently verify the deposit of the exchange funds. Exchange facilitation services are not regulated by any agency of the state of Washington or of the United States government. It is your responsibility to determine that your exchange funds will be held in a safe manner.”
“You are wonderful!”Cici S.
“I’ve been promoting you everywhere I have a chance… telling people that if they need a 1031 Exchange they need to look you up. I’m real pleased with the job. I talked to the people at (name omitted) Title Company and they were pleased with their association with you. I told them to refer their clients to you – someone that will take care of them. We’ll do business again!”Claude G.
“EquipEx’s experts saved us over $52,000 in immediate tax exposure. We didn’t know a thing about Like-Kind Exchange; now we’ll tap into it whenever we have reinvestments to make.”Rick J.
Colorado state law, CO HB1254 2009, CRS 6-1-721, affords essentially the same protections to Exchangers as the Washington state law referenced to the left. On behalf of every § 1031 Like-Kind Exchange client, ERG/EquipEx meets or exceeds all such protections.