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Relief Sought as Coronavirus Wrecks Mid-Transaction Exchange

APR. 1, 2020

Relief Sought as Coronavirus Wrecks Mid-Transaction Exchange

DATED APR. 1, 2020
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From:  Leslie.Quiros@shell.com <Leslie.Quiros@shell.com>
Sent: Wednesday, April 1, 2020 2:03 PM
To: Notice Comments <Notice.Comments@irs.gov>
Subject: Rev. Proc.2005-27

Dear Counsel:

This e-mail is in reference to the required 45 day period to identify and commit to a property when you follow the IRS 1031 Exchanges Rules.

More specifically, I'm hereby respectfully requesting an extension of the required 45 days to identify any replacement properties following the closing of my relinquished property. This request is based on the unexpected and sudden impact of the Corona Virus pandemic that we are now experiencing across our nation. Below is a timeline and important points for consideration to grant an extension:

1. On 3/16/2020 I officially sold a house located in McKinney, Texas.

2. As part of this process, I completed all the necessary IRS paperwork to relinquish the house and buy a new house or townhome via the 1031 Exchange IRS Rules.

3. To perform the 1031 Exchange I solicited the services of a 1031 Exchange professional who did all the paperwork and put in a scroll account the exchange proceeds monies until I buy the new house or townhome. For these services, I paid a total fee of $1,000.00.

4. A few days before I sold the house, I initiated the process of looking for a new house or townhome in Maryland with the objective of closing in the new house within the 45 days allowed by the IRS Rules.

5. However, the Corona Virus Crisis brought other factors into play that will not allow me to purchase the new house within the required 45 days as further explained below in my timeline:

  • Last week I received an e-mail from my realtor indicating that until further notice real estate agents will no longer show properties in person; but rather virtually (via computer web pages) due to the Corona Virus situation. As you know, you cannot make a transaction of this magnitude (high cost) just based on a virtual viewing of potential properties.

  • In addition to the above, the Corona Virus crisis brought to the table other factors that will not allow me to see properties in a timely manner and be able to buy/close the new property within 45 days, including:

    • Thousands of flight cancellations across the whole nation and airlines that I was forced to cancel (I live in Louisiana and bought tickets to fly to Maryland).

    • Rental car cancellations

    • Multiple lockdown of both public and private entities/places that will delay the process.

    • Last but not least, both my wife and I pertain to the third age population sector which are at high risk of getting the virus; therefore we must be prudent in the traveling we make. At this point in time, with the Corona Virus issue still climbing it would not be prudent to take additional and unnecessary health risks.

At this point in time with the uncertainty of the overall Corona Virus crisis, it will be almost impossible to comply with the 45 days requirement, even if I do the best I can.

Your consideration of the above circumstances and the approval of an extension is hereby respectfully requested for the aforementioned reasons. If you or your office are not the right ones to bring this issue to your attention, please let me which government official or office I should contact.

Thank you so much for your attention and kind consideration. Looking forward to your response.

Respectfully,

Leslie R. Quiros
2341 Ormond Blvd.
Destrehan, Louisiana 70047
Tel. 504 610-5703 Mobile

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