In a 1031 exchange, two dates rule everything: 45 days to identify replacement property and 180
days to close. Miss either, and the exchange fails. There are almost no exceptions.
Federal disaster relief is one of them. This fall, the IRS issued several new relief announcements that
can postpone time-sensitive tax deadlines, and exchange deadlines may be among them.
What the IRS announced
Indiana storms. On September 2, 2026, the IRS announced relief for taxpayers hit by severe storms,
tornadoes and flooding that began August 11. Deadlines due on or after that date are postponed to
February 1, 2027. The IRS added more counties on October 8, so check the current list even if your
county wasn’t on it at first.
Israel, the West Bank and Gaza. On September 30, 2026, the IRS issued Notice 2026-63. It
postpones deadlines falling between September 30, 2026, and September 30, 2027, to September 30, 2027,
Combined with three earlier notices, relief now covers deadlines back to October 7, 2023, per
Accounting Today.
The IRS has also issued relief in other areas this year. Exchange professionals track these updates
monthly, such as Legal 1031.
How this connects to your exchange
The relief announcements don’t name 1031 exchanges directly. Instead, they point to Revenue
Procedure 2018-58, the IRS list of time-sensitive acts that can be postponed. That list includes the
45-day and 180-day exchange deadlines, under specific conditions.
Whether your deadlines move depends on your facts. Questions that matter include:
Is your property, residence or business in a covered area?
Are your tax records, tax preparer or a key party to the deal located there?
Does your deadline fall within the relief period?Did a party to the transaction, such as a lender or title company, have trouble performing
because of the disaster?
Living in the disaster area isn’t the only way to qualify. Exchangers outside it can sometimes qualify too.
Don’t assume. Confirm
Disaster relief is a safety net, not a strategy. The safest plan is still to treat your original deadlines as
fixed until your advisors confirm otherwise in writing.
If you think relief may apply:
- Tell your qualified intermediary right away.
- Ask your tax advisor to review the specific IRS notice and Rev. Proc. 2018-58.
- Document why you qualify: addresses, dates and the parties affected.
- Keep working toward your original deadlines while you wait for an answer.
Structure first, then reinvest
At we1031X, timing discipline is set from day one, so there are no retroactive fixes. We’re
independent and client-hired, with no referral fees or competing incentives, and your proceeds are
held in a segregated, protected account between sale and reinvestment.
Selling investment property soon, or worried about a deadline in progress?
Start Your Exchange or Contact Us to talk through your timeline.
