KPMG report: Like-kind exchange relief for taxpayers affected by Hurricane Ida

Relief beyond taxpayers in Louisiana

Taxpayers affected by Hurricane Ida

For taxpayers affected by Hurricane Ida, the aftermath of the storm may cause significant disruption in their ability to monitor and complete transactions that were in process at the time of the disaster.

For taxpayers that were in the midst of a like-kind exchange transaction under section 1031, the failure to complete the exchange within the specific time requirements of section 1031 would typically result in the recognition of gain that the taxpayer originally intended to defer.

The IRS has granted “affected taxpayers” with respect to Hurricane Ida an extension of time to perform certain actions.

Read a September 2021 report [PDF 139 KB] prepared by KPMG LLP that explains how taxpayers affected by the disaster—including those located outside the specific covered disaster area—may qualify for this rare extension of time: What’s News in Tax: Like-kind exchange relief for taxpayers affected by Hurricane Ida: Relief beyond taxpayers in Louisiana

 

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