IRS Explains COVID-19 Relief for Like-Kind Exchanges

UIL: 1031.00-00
Release Date: 9/25/2020

Date: April 27, 2020

Refer Reply To: CONEX-109090-20

The Honorable Todd Young
United States Senator
3602 Northgate Court, Suite 15
New Albany, IN 47150

Attention: * * *

Dear Senator Young:

I am responding to your inquiry dated March 31, 2020, on behalf your constituent, * * *. Due to the COVID-19 emergency, * * * asked for an extension of the deadlines for like-kind exchanges of real property under Section 1031 of the Internal Revenue Code (IRC).

On April 10, 2020, the Department of Treasury and the IRS released Notice 2020-23. The Notice extends relief for taxpayers who need to perform certain time-sensitive acts under the IRC. It also includes relief for taxpayers whose 45-day identification period or 180-day exchange period under IRC Section 1031 expires between April 1^st and July 14^th. Under the Notice, those taxpayers have until July 15^th to complete the required actions. Revenue Procedure 2018-58 describes the relief as directed in the Notice.

For more information, * * * can review the enclosed Notice 2020-23 and Revenue Procedure 2018-58. These documents are also available on our website, www.irs.gov.

I hope this information is helpful. If you have additional questions, please feel free to contact * * * at * * * or myself at * * *.

Sincerely,

Angella L. Warren
Chief, Branch 4
Office of Associate Chief Counsel
(Income Tax and Accounting)

Enclosures (2)