March 2023 Update: Extended 45-Day and 180-Day Postponement Dates for Disaster Areas in California; Alabama; Georgia
The IRS has issued additional tax relief that can extend/postpone the 45-day and 180-day deadlines applicable to ongoing 1031 exchanges, for disaster areas in California, Alabama, and Georgia. For background regarding this tax relief and additional considerations, please review the linked IRS disaster guidance and Legal 1031 articles below: Alabama: (AL-2023-01) Disaster began on January […]
1031 EXCHANGE NEWS UPDATE: Pennsylvania Conforms its State Tax Code to Federal §1031
By: James T. Walther, Esq., LL.M. General Counsel, Legal 1031 Exchange Services, LLC Updated 1/2/2023 – this law is now effective for 1031 exchanges where property is relinquished in 2023. Summary: Pennsylvania now recognizes 1031 Exchanges for individuals and partnerships. For tax years beginning after December 31, 2022, Pennsylvania will conform its state tax code […]
1031 EXCHANGE UPDATE: HOW TO AVOID A LITTLE-KNOWN TAX SEASON TRAP BY PRESERVING YOUR 180-DAY EXCHANGE PERIOD
IRC Section 1031 requires that exchanging taxpayers acquire all replacement property by the earlier of (i) 180 days from the sale of the relinquished property, or (ii) the Federal tax return due date for the year in which the exchange commenced. As a result, taxpayers with exchange transactions commencing in the 4th quarter of the […]
1031 EXCHANGE UPDATE – TAX RELIEF FOR CALIFORNIA DUE TO SEVERE WINTER STORMS, FLOODING AND MUDSLIDES
February 6, 2023 Beginning December 27, 2022, severe winter storms made landfall, resulting in flooding, landslides and mudslides that severely impacted areas of California. Please note that pursuant to IRS Notice CA-2023-01, a subsequent storm impacted areas of California beginning January 8, 2023. To learn more about relief under CA-2023-01, check out our article here. […]
What is the 3.8% “MEDICARE TAX” or NET INVESTMENT INCOME TAX (“NIIT”)?
2024 Update Many investors selling real estate or other high value investments are often surprised to find out that their tax liability could be subject to an extra 3.8% surtax in addition to the applicable short-term or long-term capital gains tax rates. The Net Investment Income Tax (“NIIT”) or Medicare Tax is a 3.8% surtax […]
1031 EXCHANGE UPDATE – TAX RELIEF FOR AFFECTED AREAS OF ALABAMA & GEORGIA DUE TO SEVERE STORMS, HIGH WINDS, AND TORNADOES
January 30, 2023 Beginning January 12, 2023, a severe storm made landfall and resulted in straight-line winds and tornadoes that severely impacted areas of Alabama and Georgia. Due to the disruption caused by the storm, the IRS issued tax relief pursuant to IRS Notice AL-2023-01, dated January 18, 2023 (updated to include additional counties), and […]
January 2023 Exchange Update: IRS Disaster Relief 2022-2023
THE IRS ISSUES DISASTER RELIEF FOR HURRICANE FIONA, HURRICANE IAN, NEW YORK SNOWSTORMS, AND OTHER RECENT DISASTERS January 30, 2023 In the last few months of 2022, entering 2023, we have seen an increase in hurricanes, snowstorms, flooding, and other extreme weather events. The IRS has recently published federally declared tax relief on their website […]
1031 EXCHANGE UPDATE – TAX RELIEF FOR ILLINOIS DUE TO SEVERE STORMS AND FLOODING
January 17, 2023 Occurring between July 25 and 28, 2022, a severe storm accompanied by flooding severely impacted areas of Illinois. Due to the disruption caused by the storm, the IRS issued tax relief pursuant to IRS Notice IL-2022-08, dated November 16, 2022 (the “IRS Notice”), to those who reside or have businesses located in St. […]
1031 EXCHANGE UPDATE – TAX RELIEF FOR CALIFORNIA DUE TO SEVERE WINTER STORMS, FLOODING AND MUDSLIDES
January 17, 2023 Beginning January 8, 2023, a severe winter storm made landfall and resulted in flooding and mudslides that severely impacted areas of California. Please note that pursuant to IRS Notice CA-2023-02, a similar storm impacted areas of California beginning December 27, 2022. To learn more about relief under CA-2023-02, check out our article […]
WHY DO I NEED A QUALIFIED INTERMEDIARY BEFORE I START MY 1031 EXCHANGE? A DISCUSSION ON ACTUAL AND CONSTRUCTIVE RECEIPT
January 9, 2023 By: Julia Mastrotto, Esq., Counsel If I have already closed on the sale of real estate, is it too late to structure my transaction as a 1031 exchange? In short, a taxpayer transacting a 1031 exchange (“exchanger”) should always engage a qualified intermediary (“QI”) to the sale of real estate in order […]