1031 Exchange Deadline Extension – COVID-19


The COVID-19 affected certain deadlines, including those of a 1031 exchange. On March 13, 2020, the President of the United States issued an emergency declaration in response to the ongoing Coronavirus Disease 2019 (COVID-19) pandemic. The IRS issued a Notice 2020-23 allowing the postponement of the time for performing certain acts. This was a result of the president’s declaration and the help of The Federation of Exchange Accommodators (FEA).

Normally, a 1031 exchanger needs to identify the replacement property within 45 days. And, the exchanger also needs to the complete the purchase of the replacement property within 180 days from the date of the sale. However, due to COVID-19, if your 1031 exchange deadline was on or after April 1 and before July 15, it is now due on July 15, 2020. In other words, any deadline between April 1- July 15 is extended to July 15, 2020. However, there is still confusion regarding whether the extension is mandatory or just permissible. I found that Accruit, a 1031 exchange specialist, provides up to date information regarding COVID-19 and 1031 Exchange Deadlines.

If you are looking to gain more knowledge regarding a 1031 exchange, please let me know. It is a great mechanism for tax deferral of real estate capital gains. So, I recommend using this mechanism for several reasons that I am happy to share with you. Please, contact me here if you would like to know more about how it works, costs, benefits, and the process of getting the exchange completed. I have personally done a few of these myself. And, I have have also helped clients complete real estate transaction within the 1031 exchange requirements.

Austin Real Estate Market – March 2020 Update

In Texas we received the shelter in place orders on March 24, 2020. Prior to that date, the real estate market was chugging along normally. I could definitely see a coming new season of multiple offers and short days in the market again (seller’s market)… that is, of course, prior to having any idea of what was to come. That is why I want to give you an update on the Austin real estate market.

I believe no one really knew how to react to the pandemic situation. Social distancing, shelter-in-place, travel restrictions, etc, were creating a new situation for us all. An unprecedented one! That is a term [unprecedented] that I find myself saying often these days. And unfortunately, expect to keep using throughout the Fall.

Having said that, the greater Austin real estate market in March did not reflect any drastic changes. In fact, according to Realtor.com, March’s residential sales in the five-county Metropolitan Statistical Area (MSA) increased 2.2% year over year. Sales and median price jumped 11.7% year over year to $335,200. Monthly housing inventory declined 0.7 months year over year to 1.6 months of inventory. And the average days on market decreased from 65 days to 54 days.

For most of March, it was still ‘business as usual,’ and real estate agents continue serving homebuyers and sellers using safely measurements. For example, when showing houses, my clients and I are wearing masks, gloves, and are careful about not touching personal items. I also confirm ahead of time that neither party is aware of being exposed or have COVID-19.

For more information about the market or to schedule an appointment or consultation, please email me at NaomiBourgeois@HindsiteAustin.com or contact me here.