Article Detail

News & Knowledge

IRS Extends Like-Kind and Qualified Opportunity Zone Deadlines

April 10, 2020

By: Amanda Wilson 

Section 1031 of the Internal Revenue Code allows a taxpayer to sell real property (the relinquished property) and replace it with real property of a like-kind (the replacement property) without recognizing tax on the sale if certain requirements are met. Two of those requirements are that the taxpayer must identify replacement property within 45 days of the sale of the relinquished property and acquire the replacement property within 180 days of the sale of the relinquished property.

Similarly, Section 1400Z-2 of the Internal Revenue Code allows taxpayers several benefits if the taxpayer has capital gains that he or she invests in a qualified opportunity fund within 180 days. These benefits include deferring the capital gains, usually until December 31, 2026, and potentially avoiding any taxable gain on the liquidation of the qualified opportunity fund investment if the investment is held for at least ten years.  

These 45-day and 180-day requirements were causing concern for taxpayers given the current state of the country as a result of the coronavirus pandemic. In recognition of this, the Internal Revenue Service issued Notice 2020-23 last night, extending the deadline to July 15, 2020, for several types of returns or other filing obligations which were due to be performed on or after April 1, 2020, and before July 15, 2020.

The notice specifically provides an automatic extension until July 15, 2020, of the Section 1031 45-day and 180-day periods and the Section 1400Z-2 180-day period for any period that would end on or after April 1, 2020, and before July 15, 2020. An extension is not available if the 45-day or 180-day period expired prior to April 1.

This is good news for taxpayers that were struggling to complete their like-kind exchange or opportunity fund investment. 

Be sure to visit our Coronavirus (COVID-19) Resource Center page to keep up to date on the latest news.


This article is informational only. You should consult an attorney before acting or failing to act. The law may change rapidly and no warranty is given. LOWNDES DISCLAIMS ALL IMPLIED WARRANTIES AND WITHOUT LIMITATION, ANY WARRANTY OF FITNESS FOR A PARTICULAR PURPOSE. ALL ARTICLES ARE PROVIDED AS IS AND WITH ALL FAULTS. Consult a Lowndes attorney if you wish to establish an attorney/client relationship.
Amanda

A member of the firm’s tax practice, Amanda Wilson concentrates on federal tax planning and structuring. She represents clients in a wide variety of complex federal tax matters with a particular emphasis on pass-through entities such as partnerships, S corporations and real estate investment trusts.


Specifically, Amanda focuses on advising clients on the formation, operation, acquisition and restructuring of such pass-through entities. In addition, she regularly advises clients on the structuring and operation of private equity funds, real estate funds and timber funds. Amanda is the author of the Bloomberg Tax Management Portfolio 718-3rd Edition, Partnerships- Disposition of Partnership Interests or Partnership Business; Partnership Termination.

Amanda regularly works in structuring deals to benefit from tax advantaged structures, including like-kind exchanges, new market tax credits, low income housing tax credits, and qualified opportunity zones. Amanda also has extensive experience in corporate planning and international tax matters, as well as federal tax controversy. Her practice before the Internal Revenue Service (IRS) includes providing advice on audits and appeals, drafting protests and ruling requests, and negotiating settlements.

Prior to joining the firm, Amanda worked for Sutherland Asbill & Brennan LLP (now Eversheds Sutherland), an Am Law 100 firm in the Atlanta office, where she was part of Sutherland’s Tax Practice Group. Amanda has also served as an adjunct professor at Emory University School of Law where she taught Partnership Taxation.

Amanda regularly contributes to the firm’s Taxing Times blog and is a regular panelist on tax webinars hosted by Strafford Publications.

Meritas Law Firms Worldwide logo
Do Your Part Logo