While the IRS has not provided any guidance on extensions for 1031 exchange time deadlines, if an extension will be provided, the information would likely be posted at: https://www.irs.gov/newsroom/tax-relief-in-disaster-situations.
We will keep you apprised of any information we receive on such extensions or any modification to IRC Section 1031 and how it might effect your exchange.
As questions arise in our industry about the security of exchange funds held by qualified intermediaries, we want to assure you that exchange funds held by Edmund & Wheeler, Inc. are strictly held in segregated deposit accounts with FDIC insurance up to $250,000.00. Because The Provident Bank is our banking partner and headquartered in Massachusetts, our client’s escrow accounts are insured 100% above the FDIC limit by the Massachusetts Depositors Insurance Fund.
During the past two weeks, we have seen closings occur normally on both the sell and buy sides of transactions. We have heard some good news and some challenging news surrounding working with lenders. For the most part, every transaction has different dynamics, but so far it seems like the local and regional lenders have been working well with our clients to meet their objectives.
We have also seen some very creative thinking by our clients, which has been refreshing. Even though we don’t yet understand what the real estate world is going to look like even 30 days from now, we have seen some very interesting opportunities being put together.
Of course, the most important thing for all of us is to cherish every moment with our families, follow the guidelines and mandates to stay healthy and to remain optimistic.
Please call my direct line any time if you have questions surrounding your exchange or to just check in with us with any questions you may have.