Last week, the IRS issued a new tax filing extensions which expanded to “cover individuals, trusts, estates corporations and others.” Notice 2020-23 released by the IRS granted an extension to any 45-day or 180-day deadline occurring between April 1 and July 14, to July 15, 2020.
This extension also includes those seeking to file 1031 exchanges deadlines, which could affect cell site landlords.
A 1031 exchange allows real estate investors to sell one asset and identify and purchase a similarly valued property within 45 days and close on it within 180 days to avoid capital gains taxes. Due to the COVID-19 crisis, the timeframe may be difficult to honor as services have come to a halt.
According to an article in BisNow, “numerous prominent commercial real estate organizations recently petitioned U.S. Treasury Secretary Steven Mnuchin to extend the deadlines by which investors can purchase replacement properties for recent sales by adding 120 days to both deadlines.”
The notice expands the extension to additional returns, tax payments and now applies to all taxpayers who have a filing or payment deadline falling between the aforementioned time frame.
For more information on the tax filing extension, visit the IRS’ website or seek professional tax advice for assistance.
DISCLAIMER: TowerPoint does not provide advice on any income tax, capital gains tax or other tax requirements or issues related to any transaction in which TowerPoint is a party or participant in any fashion. Use of any information obtained from TowerPoint or its affiliates or agents or referral by TowerPoint or its affiliates or agents is for general information only and does not represent tax advice either express or implied. You are encouraged to seek professional tax advice for tax questions and assistance.
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