IRS Extends 1031 Exchange Deadlines for California Wildfire Victims

The IRS has granted tax relief to taxpayers affected by the California wildfires that began on January 7, 2025. This relief extends certain deadlines related to 1031 exchanges.

Eligible taxpayers impacted by the January 2025 California wildfires now have extended 45-day identification, 180-day exchange, and QEAA deadlines—confirm your eligibility with your advisor.

Key Takeaways:

• Who qualifies?
  • Extensions apply to Affected Taxpayers who live or do business in Los Angeles County, or who keep records related to their exchange in the disaster area. Non-Affected Taxpayers may also qualify if their relinquished property was transferred on or before January 7, 2025, and they faced disaster-related challenges meeting deadlines.

• New deadlines:
  • 45-Day Identification Period: Extended to October 15, 2025, for exchanges started between November 23, 2024, and January 7, 2025.
  • 180-Day Exchange Period: Extended to the later of October 15, 2025, or 120 days after the original deadline for exchanges started between July 11, 2024, and January 7, 2025.
  • Qualified Exchange Accommodation Agreement (QEAA): The 5-day period to enter a QEAA is extended to October 15, 2025 for reverse exchanges started between December 31, 2024, and January 7, 2025.

Note: The California Franchise Tax Board has conformed to these extensions. Taxpayers should consult their advisors to confirm eligibility and specific deadlines.