1031 exchange affected by the storms in the southeast, what you need to know.

Let me start by saying if you have been affected by the storms throughout the southeast, I hope you’re okay. I hope your family is okay. I hope the disruption to your life and livelihood is as small as it can possibly be.

That starts with helping you if you’re in the middle of a 1031 exchange. Per Rev Proc. 2018-58, if you are affected by a federally declared disaster zone, you may have more time to complete all aspects of your 1031 exchange.

To be granted additional time included you must: Live in the disaster zone, have a relinquished property in the disaster zone, or identify a replacement property in the disaster zone. Specifically, as a transferor, you must have exchanged your property before the disaster zone date declaration occurred and you have one of the following,

• Your relinquished property is in an affected zone
• Your tax address in an affected zone
• Your identified property is in an affected zone
• The principal place of business of any involved parties (CPA, Brokers, Lawyers, Title co) is in an affected title zone
• A related individual or an employee at a company involved in the transaction is killed, missing or injured in the disaster
• A key document in the exchange is lost or damaged
• A lender will no longer fund a party
• A party is unable to obtain title insurance

If replacement property is damaged in the disaster but the 180 day date occurs before the official federal declaration, the extension is also granted. This can happen as it may take some time for the official declaration from the government to occur after a serious natural disaster.

If you’re an affected taxpayer you will get an additional 120 days or delay until the last day of the disaster extension zone date, whichever is longer to execute both your 45 day identification period and 180 days to close. For those currently affected by the hurricanes in Florida and other parts of the southeast, that is May 1st, 2025. However, the extension may not extend beyond 1 year or past the individual tax return filing date.

You can check if you are included in the list of qualified disaster areas set by the IRS here: If you want to read the IRS guidance on disaster exchange yourself, you can do that here. If you need a 1031 exchange service partner who understands the rules and is here to support you every step of the way, reach out to us at 1031 Prime or contact me directly at Jackson@1031Prime.ai .

*the above does not constitute tax or legal advice. Please reach out directly to your advisors for guidance on your specific situation.