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IRS Extends 1031 Deadlines for California

BREAKING NEWS:

IRS Disaster Notices Bring Unprecedented 1031 Deadline Extensions to California

Frequently, listing your property with the hopes of completing a 1031 Exchange can cause stress because of the 1031 Exchange deadlines. 

However, that has temporarily changed due to the recent update to the disaster extensions impacting most counties in California. If you are a resident of or have your principal place of business in California, you may be considered an “affected taxpayer” that is eligible to significantly extend the 1031 Exchange timelines. To determine if you are an “affected taxpayer” please review this blog post on the IPX1031 website and consult with your tax advisor. 

The recently released update extension not only delays the tax filing deadline to October 16, 2023, it could also extend your 1031 Exchange deadlines until October 16, 2023 as well! 

For example: Typically, if you were to close your investment property on April 1st, you would have until May 16th to identify property and September 28th to close (45 and 180 days respectively). With this recent extension however, you will now have until October 16th to both identify AND close your Replacement Property.

This will allow for clients that are doing 1031 Exchanges to take more time to do the due diligence on properties that they intend to purchase and potentially take advantage of lower interest rates, if rates start to decrease later in the year. Instead of rushing to find suitable Replacement Properties that meet your needs, you will now have a lot more time to make one of the biggest financial decisions of your life. 

As you can see, now is an INCREDIBLE time to list and sell your investment property and exchange into a better performing asset.

Thanks to Stephen Decker, Senior VP at IPX1031 for the article.

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Rebecca Garrett

As an avid outdoorswoman Mammoth suits Rebecca well. In 2007 her passion for hiking, skiing and the rugged beauty of the Eastern Sierra brought her to Mammoth Lakes and she hasn't looked back. The myriad outdoor activities offered by Mammoth and the Eastern Sierra are one of the main reasons people buy homes there and the principal reason she calls the area home. Rebecca has a firm grasp on real estate in the Eastern Sierra, as well as excellent customer service and negotiation skills. Her clients choose her because of her experience, integrity, and professionalism with creative & innovative ideas, tirelessly doing whatever it takes to service her clients and customers. She is highly respected in the Mammoth community, on both a professional and personal level. Instead of competing with other agents and brokers, Rebecca works with them in order to get results. In addition to being a member of the National Association of Realtors, Rebecca serves as a Director on the Mammoth Lakes Board of Realtors. She is actively involved in the community, as well as numerous non-profit organizations Rebecca started her real estate career as an agent in Los Angeles in the 90's for Jon Douglas. She then worked for John Aaroe and for Sotheby's International Realty in Pacific Palisades. Her love of architecture and design started early, as her father had his own architectural practice in London before moving Rebecca and her family to Los Angeles where he became the Director of the J Paul Getty Museum. Rebecca is British born, raised in California, has lived and worked in many countries and speaks English, Italian and French. She looks forward to working with you and helping you find the perfect home for you and your family or getting you top dollar for the sale of your home.

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