New IRS Extension for 1031, Opportunity Zone Investment deadlines

While specifics of last night's IRS release of Notice 2020-23, are a bit nebulous, the broad language appears to indicate that Commercial Real Estate (CRE) investors may benefit from a delay in Capital Gains Tax deferment deadlines.

Specifically:

• The deadlines for identification or closing of 1031 (like-kind) exchanges that were supposed to occur between April 1 and July 15 of this year have been extended to July 15.

• The deadline for investment in Qualified Opportunity Zone (QOZ) properties that was supposed to occur between April 1 and July 15 of this year has been extended to July 15.

Additional clarification on the new deadlines and specifics related to 1031 exchanges and QOZ investments is expected within the coming weeks. For now, however, it looks like investors have been given some needed breathing room.

Let us know if you have any questions or need assistance with identifying 1031 exchange or QOZ properties for investment.

Happy Friday!