IRS Extended Some Real Estate Investing Tax Deadlines

The internal revenue service has extended the deadline on two very popular real estate investing tax methods.

Given the current societal environment it would have been a fumble to not give these transactions more time.

Let’s cover the two most notable extensions and what the new timelines are….

IRS Extended Some Real Estate Investing Tax Deadlines

1.) 1031 (like-kind) exchange

If you are a real estate investor looking to sell a property and step up to a larger one then you are very familiar with this one.

The 1031 exchange allows investors to sell a property and roll the profits into another similar property, hence the “like-kind” designation.  This allows the investor to defer capital gains so long as the property they are purchasing is worth the same amount or more than the one they are selling.

Once the process is started you have 45 days to designate properties that you will pursue for purchase and then 180 days to close on one of them.

With the extended deadline any 1031 exchange transactions whose deadline falls in between April 1 and July 15, has till July 15 to complete it.

2.) Opportunity Zones

Opportunity zones are somewhat similar to the 1031 in that it allows investors to defer capital gains by rolling funds into an opportunity fund where you then use the money to acquire real estate in designated opportunity zones.

Opportunity zones have some additional tax perks, such as the requirement of paying capital gains being eliminated on the funds if you hold the investment for 10 years.

If an investor sold a property and planned to roll over the profits into an Opportunity Fund, and their 180-day deadline to do so falls between April 1 and July 15, they can make the investment as late as July 15.


Creating the extensions made sense, it especially works out for those who had deadlines in April, giving them some time to figure things out with everything being a bit up in the air at the moment.

It is times like these when buying right and knowing your numbers pays off.  Be sure you are using the ScaedyCatGuide Property Calculator to analyze properties.


2 thoughts on “IRS Extended Some Real Estate Investing Tax Deadlines

  1. Mitch, how many days do you usually (before Covid-19) take to close on a deal when doing a 1031?

    1. The sooner the better I always say, but in the end – within 45 days of selling the 1031 property you must have three potential properties to purchase identified. You then have 180 days to close on one of those properties.

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