<p>Accruit has previously provided a summary of the rules pertaining to extensions of exchange transactions <a href="https://www.accruit.com/blog/how-federally-declared-disasters-affect-10…; target="_blank">due to federally declared disasters</a>.</p>

<p>The IRS issued an extension on February 22, 2021 for various deadlines.&nbsp;The declaration permits the IRS to postpone certain tax-filing and tax-payment deadlines for taxpayers who reside or have a business in the disaster area. For instance, certain deadlines falling on or after February 11, 2021, and before June 15, 2021 are postponed through June 15, 2021.&nbsp;This includes various 2020 business tax returns due on March 15 and 2020 individual and business returns due on April 15. <span class="no-lexicon">Taxpayers </span>also have until June 15 to make 2020 IRA contributions. This extension also includes like-kind exchanges.&nbsp;</p>

<p>The IRS issued extensions for all 254 Texas counties for <a href="https://www.irs.gov/newsroom/irs-announces-tax-relief-for-texas-severe-…; target="_blank">victims of the severe winter&nbsp;storms</a>&nbsp;that began on February 11, 2021.</p>

<p>Accruit suggests that affected <span class="no-lexicon">taxpayers</span> consult with their tax and legal professionals as well as confirm on IRS website for any updates.</p>

<p>Accruit has previously provided a summary of the rules pertaining to extensions of exchange transactions <a href="https://www.accruit.com/blog/how-federally-declared-disasters-affect-10…; target="_blank">due to federally declared disasters</a>.</p>

<p>The IRS has recently issued extensions&nbsp;for Section 1031 filing deadlines related to real estate located within certain counties in Alabama.</p>

<p>In Alabama, the IRS issued extensions for Clarke, Dallas, Marengo, Mobile, Perry, Washington, and Wilcox counties&nbsp;<a href="https://www.irs.gov/newsroom/irs-announces-tax-relief-for-hurricane-zet…; target="_blank">for hurricane Zeta that began on October 28, 2020</a>.</p>

<p>Accruit suggests that affected taxpayers consult with their tax and legal professionals as well as confirm on IRS website for any updates.</p>

<p>Accruit has previously provided a summary of the rules pertaining to extensions of exchange transactions <a href="https://www.accruit.com/blog/how-federally-declared-disasters-affect-10…; target="_blank">due to federally declared disasters</a>.</p>

<p>The IRS has recently issued extensions&nbsp;for Section 1031 filing deadlines related to real estate located within certain counties in California, Florida,&nbsp;and Louisiana.</p>

<p>In California, the IRS issued extensions for&nbsp;Fresno, Los Angeles, Madera, Mendocino, Napa, San Bernardino, San Diego, Shasta,&nbsp;Siskiyou, and Sonoma counties <a href="https://www.irs.gov/newsroom/irs-announces-tax-relief-for-september-cal…; target="_blank">for wildfires that began on September 4, 2020</a>.</p>

<p>In Florida, the IRS issued extensions&nbsp;Bay, Escambia, Okaloosa, Santa Rosa, and Walton counties&nbsp;<a href="https://www.irs.gov/newsroom/irs-announces-tax-relief-for-hurricane-sal…; target="_blank">for hurricane Salley that began on September 14, 2020</a>.</p>

<p>In Louisiana, the IRS issued extensions for Acadia, Beauregard, Calcasieu, Cameron, Jefferson Davis, Lafayette, Rapides, St. Landry, St. Martin and Vermilion parishes <a href="https://www.irs.gov/newsroom/irs-announces-tax-relief-for-hurricane-del… hurricane Delta that began on October 6, 2020</a>. Extensions were also issued for&nbsp;Acadia, Allen, Beauregard, Bienville, Bossier, Caddo, Calcasieu, Cameron, Catahoula, Claiborne, Evangeline, Grant, Jackson, Jefferson Davis, Lafayette, La Salle, Lincoln, Morehouse, Natchitoches, Ouachita, Pointe Coupee, Rapides, Sabine, St. Landry, St. Martin, St. Mary, Union, Vermilion, Vernon, Webster, West Feliciana, and Winn parishes <a href="https://www.irs.gov/newsroom/irs-announces-tax-relief-for-hurricane-lau…; target="_blank">for hurricane Laura that began on August 22, 2020</a>.</p>

<p>Accruit suggests that affected taxpayers consult with their tax and legal professionals as well as confirm on IRS website for any updates.</p>

<p>As members of the Federation of Exchange Administrators (FEA), Accruit is an active participant in the work that is being done to preserve Section 1031 of the Internal Revenue Code. The FEA is incredibly important to our industry and we are proud to be members and support the work they are doing.</p>

<h2>The History of 1031 Exchange</h2>

<p>IRC Section 1031 will be 100 years old in 2021, and the intent behind its creation was to encourage active reinvestment within our communities by deferring the payment of tax on gain when the full value is rolled over into other real estate. The benefit to investors in utilizing a 1031 exchange is that the capital gains taxes are deferred, allowing them to use those funds to increase their level of investment. In fact, according to an often-cited study, 88% of properties involved in an exchange are later sold in a taxable transaction (<a href="https://www.1031taxreform.com/ling-petrova/&quot; target="_blank">Ling &amp; Petrova 2015</a>).</p>

<p>As with all good policy, 1031 exchange has withstood the test of time and has continued to evolve with the addition of regulatory measures (e.g. the requirement of a Qualified Intermediary, such as Accruit). The positive effect on our economies are still just as relevant today as they were in 1921.</p>

<p>Used by a variety of investment and business use taxpayers, residential rental property, agriculture and conservation, and many other types of real estate, 1031 exchange transactions represent a broad cross-section of taxpayers. In addition, 1031s promote the growth of small business by providing additional liquidity of investment dollars to purchase properties of an increased value.</p>

<h2>The Economic Impact of 1031 Exchange</h2>

<p>Our CEO, Brent Abrahm, previously wrote about <a href="https://www.accruit.com/blog/1031s-build-america&quot; target="_blank">how 1031s build America</a>. Not much has changed in five years since this was written, and the importance of our industry has never been more apparent than it is right now. The impact of the COVID-19 global pandemic has had a grave impact on Mainstreet America as businesses have had to close operations either temporarily or permanently. The infusion of cash into local economies that comes as a result of 1031 exchange transactions influences not just real estate, but the labor and construction markets as well.</p>

<p>Utilizing 1031 exchange gives taxpayers options to grow and diversify their real estate holdings. It allows them to invest in new housing programs in their communities. 1031 exchange sustains farms and ranches, building businesses that can be passed down for generations. There are a variety of ways that real estate investors use 1031 exchange to grow and diversify their portfolios, and when they do, the communities around them benefit.</p>

<h2>Help Us Preserve 1031 Exchange</h2>

<p>As <a href="https://www.accruit.com/blog/politicians-target-1031-exchanges&quot; target="_blank">1031 exchange is being threatened in Washington</a>, the FEA has put together a piece that explains the economic benefits of 1031 exchange in our local communities. We invite you to <a href="https://www.accruit.com/sites/default/files/FEA%201031%20Sustaining%20A…; target="_blank">read the piece the FEA has created</a>, then ask you to contact your state representatives and ask them to preserve 1031 exchanges.</p>

<p>With three past Presidents of the FEA and five board-level members on our staff, Accruit is committed to ensuring that this industry continues for another 100 years and beyond.</p>
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<p>There's no question that 2020 has been a crazy year. This year's Federation of Exchange Accommodators (FEA) Conference theme is "Standing Strong in the Winds of Change" and it could not be more appropriate. The conference this year is all virtual, but we anticipate the content to be just as informative as it has been in years past. This is where all of the people in our industry get together and learn from the best among us. Gathering digitally from September 22-25, 2020, we are looking forward to seeing old friends and colleagues and being steeped in learning.</p>

<p>Over four days,&nbsp;6 classes on 1031 exchanges including potential changes &amp; the pending election will be shared among our peers.&nbsp;</p>

<p>Accruit is honored to have been tapped for the third year in a row to teach the Reverse Exchange Bootcamp. Martin S. Edwards (past FEA President)&nbsp;and Jordan Born (current FEA Board member and member of the government affairs and ethics committees) will be teaching this course.&nbsp;</p>

<p>The FEA is such an integral part of our business, which is why Accruit remains a very active member, and can boast that&nbsp;five of our employees hold or have held some type of leadership within the organization, from board member to President. They represent our industry in Washington to ensure that 1031 exchange is protected so that we can continue to serve our clients.</p>

<p>We look forward to learning a lot and bringing that knowledge back to better serve our clients.</p>

<p>Never stop learning.</p>