As we’ve discussed before, your 1031 exchange deadlines (which are typically hard and fast) may be extended in very rare circumstances such as being in a federally declared disaster zone. But what exactly does that mean? What constitutes being in the federally declared disaster zone for 1031 exchange purposes?
If your replacement property is flooded with 10 feet of water because the area was hit by a hurricane, you don’t necessarily have to be physically in the disaster area. But if the property you designated in your 1031 exchange was in the disaster area, or the title company you’re working with was in the disaster area you may still be eligible for the extension.
It’s important for everyone to take a close look at each of these extensions as they’re issued to figure out how you may be eligible. It may be that the property you were intending to buy was in the disaster zone, or your bank that’s financing your loan was delayed because of the disaster. It’s usually pretty broadly interpreted but you need to look at each specific declaration to make sure you qualify.
Start Your 1031 Exchange: If you have questions about 1031 exchanges, feel free to call me at 612-643-1031.
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