NEW YORK, April 21, 2020 /PRNewswire/ -- Legal 1031 Exchange Services, LLC, a national qualified intermediary for 1031 exchanges, and a subsidiary of Kensington Vanguard National Land Services, announced today that they have created a web based Covid-19 1031 exchange extension calculator.
This calculator is located at: https://legal1031.com/1031-basics/calculators/1031-extension-calculator-due-to-covid-19/
The IRS recently issued Notice 2020-23 which provides an extension for some 1031 exchange taxpayers due to the Covid-19 pandemic. Unfortunately, due to some unclear language used in the Notice, there is a debate as to the number of extra days a taxpayer might receive.
Some experts contend that Notice 2020-23 controls for 1031 exchange taxpayers and extends either their 45-day identification period, or 180-day period in which to purchase replacement property, until July 15, 2020, so long as the last day of either of those periods falls between April 1, 2020 and July 15, 2020.
Other experts contend that Notice 2020-23 merely enables the provisions of Rev. Proc. 2018-58 and provides for an extension if either the 45-day or 180-day time deadline for an exchange falls between April 1 and July 15, allowing taxpayers to extend either or both of those periods for an extra 120-days.
"Our website provides a fuller explanation of the two positions taxpayers and their advisors need to consider when determining their extension," said Matthew K. Scheriff, CPA, and Senior Vice President. "It also calculates the 45-day and 180-day extension dates for each position."
The IRS has recently admitted that the guidance it provided to 1031 exchange taxpayers is unclear and they are currently working on clarification. Taxpayers should make sure to consult with their tax or legal advisors before making a decision.
Kensington Vanguard National Land Services operates three divisions:
- Commercial Division is a market leader in handling the largest and most complex commercial real estate transactions in the marketplace, servicing a prominent and diversified clientele consisting of property owners, developers, REITs, private equity funds, law firms, family offices and institutional lenders.
- Residential Division provides title and settlement services for residential purchases and refinances driven by realtors, attorneys and both regional and national mortgage originators. Approved as preferred vendor for leading financial institutions, this division's technology and operating model drive the highest quality execution and service.
- Legal 1031 Exchange Services, LLC's 1031 Division of seasoned experts and Certified Exchange Specialists provide clients and their advisors with IRC §1031 qualified intermediary services enabling them to defer capital gains tax they would realize upon the sale of their business or investment property.
About Kensington Vanguard National Land Services
Kensington Vanguard National Land Services, headquartered in New York City with offices in Florida, New Jersey, Virginia and Texas, is one of the largest full‐service national title insurance and settlement agencies in the United States. Resulting from a 2008 merger between Kensington National Land Services, LLC and Vanguard Title Agency, Inc. (both founded in 2002), Kensington Vanguard provides commercial and residential title insurance, settlement, escrow and 1031 exchange services. Operating in all 50 states, the Company serves as agent to the nation's largest and most prestigious title insurance underwriters. For more information, visit www.kvnational.com.
SOURCE Kensington Vanguard National Land Services