Dear friends and fellow Californians,
As we navigate through the aftermath of the devastating wildfires in Los Angeles, I want to take a moment to share some crucial updates that may provide relief for those of you affected. On January 10, 2025, the IRS issued a notice regarding tax extensions specifically for your community.
If you are a taxpayer residing in Los Angeles County or operate a business here, you have some options available to you regarding tax relief under Rev. Proc. 2018-58. You can choose to apply for relief under either Section 6 OR Section 17 (but unfortunately not both).
Here’s a quick breakdown:
- Section 6: If you select this option, any deadlines that fall between January 7, 2025, and October 15, 2025, will be postponed to October 15, 2025. This means you can take a breath and manage your affairs with a little less stress.
- Section 17: Should you decide against Section 6, or if you’re a non-affected taxpayer, then this relief could be for you. This option allows for the 45 and 180-day deadlines on properties relinquished before January 7, 2025 to be postponed for an additional 120 days, or until October 15, 2025, whichever comes later.
For more information check the IRS website regarding the 2025 California wildfires extension.
I encourage each of you to speak with your tax advisors to determine if you qualify for these extensions, as they could bring some much-needed help during this challenging time. At 1031 Exchange Place, we’re here to help you through this process. Whether you have questions about your 1031 exchange or need assistance understanding the new deadlines, our team is ready and willing to guide you every step of the way. Don’t hesitate to reach out; your peace of mind is our priority. Remember, we’re all in this together, and it’s crucial to support one another and stay informed.
Take care and stay safe!
