March 22, 2019 – Please scroll down for current updates.
Given the significant changes that we’ve all had to make in response to COVID-19, we’d like to take this opportunity to assure you that our employees and their families are safe, and we hope the same for you and your families. The health and safety of our clients, our employees and their families are our top priorities.
As a company, we are able to work securely and remotely to ensure seamless service. No originals are required to complete your exchange for our purposes. We are ready and available to answer any questions you may have regarding your transactions, day or night.
We have had client’s ask us if the current regulations related to the exchange periods and the rules surrounding the release of escrow have been modified during this challenging time.
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.
John D. Hamrick
Direct Line: 603-336-3190
March 23, 2019 – NAR Requests IRS Extension of Section 1031 Time Frames and Qualified Opportunity Fund Working Capital Extension
There have been multiple requests from professionals that work in the investment real estate community, on March 17, 2020 the National Association of Realtors has requested that:
- 1031 Like-Kind Exchange deadlines be extended through the period of the crisis;
- The Qualified Opportunity Fund working capital safe harbor be extended through the crisis;
March 31, 2019 – Still No Official Guidance from the IRS
The entire industry has been flooding the IRS, the Treasury, Congressmen, etc. imploring them to provide guidance related to Section 1031, as of today, none has been forthcoming. The advice we have been given from our industry group and professionals nationwide is that we must continue following the 1031 rules, with the expectation that when guidance is finally received that the exchanges that are currently in progress will benefit from any extension.