Don’t let uncertainty in the market mean uncertainty for your Exchange.
- Difficulty scheduling inspectors for property condition reports
- Tenants not wanting unknown individuals touring their units during self-quarantine
- Property P&L statements becoming worse as rent collections are more uncertain
- Difficulty securing loans at reasonable interest rates
- Onerous lender requirements such as 12+ months’ reserves
Commercial real estate industry associations like ADISA and IPA have formally asked the Treasury and IRS to “delay 1031 Exchange deadlines” on March 23rd. An extension was granted for Exchanges via IRS Notice 2020-23. The extension allows for all Exchanges with 45-day identification and 180-day close deadlines occurring between April 1st and July 14th to be extended to the later of the traditional deadline or July 15, 2020. The extension provides some relief, however as of today there is no relief for exchanges beginning after June 1, 2020.
If you or your clients plan to perform a 1031 Exchange during Covid-19, please keep the following deadlines in place. While there has been a formal request submitted to the IRS for additional relief, this relief is uncertain as of today
To learn more about DSTs, download our FREE Guide, “Investing in Delaware Statutory Trusts“. If you have questions regarding Delaware Statutory Trusts, contact us to schedule a complimentary 1031 Consultation. Our consultations can be done over the phone, via web conference, or in person at our offices located in Mercer Island, WA and in Portland, OR. To schedule your free consultation, simply call 206-686-2211 or CLICK HERE.
Austin Bowlin, CPA – Partner at Real Estate Transition Solutions, provides exit strategy analysis, execution, income and equity replacement options for investment property owners. To reach Austin, call 206-686-2201 or email firstname.lastname@example.org.
The information herein has been prepared for educational purposes only and does not constitute an offer to purchase or sell securitized real estate investments. Statements concerning financial market trends are based on current market conditions, which will fluctuate. Past performance and forecasts are not indicative of future results and should not be relied upon.
There are risks associated with investing in real estate) properties including, but not limited to, loss of entire investment principal, declining market values, tenant vacancies and illiquidity. Because investors situations and objectives vary this information is not intended to indicate suitability for any particular investor. This material is not to be interpreted as tax or legal advice. Please speak with your own tax and legal advisors for advice/guidance regarding your particular situation.
DST 1031 properties are only available to accredited investors (typically have a $1 million net worth excluding primary residence or $200,000 income individually/$300,000 jointly of the last three years) and accredited entities only. If you are unsure if you are an accredited investor and/or an accredited entity please verify with your CPA and Attorney.
Real Estate Transition Solutions offers securities through Concorde Investment Services, LLC (CIS), member FINRA/SIPC. Advisory services through Concorde Asset Management, LLC (CAM), an SEC registered investment adviser. Real Estate Transition Solutions is independent of CIS and CAM.