By: Amanda Wilson
President Trump’s declaration of a major disaster in Florida and Georgia as a result of Hurricane Irma provides important tax relief for those residing in these states. This declaration provides automatic relief for those facing deadlines for the filing of tax returns (for example, those that had extended their 2016 personal or business tax returns to September 15 or October 15, respectively).
In addition, the declaration provides relief for those taxpayers that were in the middle of a Section 1031 like-kind exchange. For taxpayers that entered into the exchange prior to September 10, 2017, and whose 45 or 180 day window for identifying and acquiring replacement property had not yet passed, these windows have been extended. The windows now extend to January 31, 2018 or, at the taxpayer’s option, 165 days (for the 45 day period) or 300 days (for the 180 day period) from the date that the taxpayer’s relinquished property was sold, whichever is later. However, in no event can the period be extended beyond the due date for the taxpayer’s 2017 return (including extensions).