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IRS Announces Tax Relief for Taxpayers Impacted by Hurricane Debby

Accruit
08/13/24
In response to the destruction caused by Hurricane Debby, the IRS has announced extended tax relief for impacted Taxpayers within affected parts of North Carolina, South Carolina, Georgia, Florida, and Vermont. The below is a summary of the specific tax relief in relation to 1031 Exchanges.
Hurricane Debby Tax Relief Specific to 1031 Exchanges

Due to Hurricane Debby, the IRS has issued Tax Relief for counties within Georgia, Florida, North Carolina, South Carolina, and Vermont.  

Affected Taxpayer s have until February 3, 2024, to make tax payments and file for various individual and business tax returns.  

Currently, all individuals and households that reside in or have a business within South Carolina, Vermont, 61 named counties in Florida, 55 counties in Georgia, and 66 counties in North Carolina qualify for tax relief. Any area added to the disaster area at a later time will also qualify for tax relief. Visit for a full list of counties.

An “Affected Taxpayer ” includes individuals who live, and businesses whose principal place of business is in the Covered Disaster Area. Affected  Taxpayer s are entitled to relief regardless of where the relinquished property or replacement property is located. Affected  Taxpayer s may choose either the General Postponement relief under Section 6 OR the Alternative relief under Section 17 of Rev. Proc. 2018-58. Taxpayer s who do not meet the definition of Affected  Taxpayer s do not qualify for Section 6 General Postponement relief. 

Option One: General Postponement under Section 6 of Rev. Proc. 2018-58nt under Section 6 of Rev. Proc. 2018-58 (Affected Taxpayers only). Any 45-day deadline or 180-day deadline (for either a forward or reverse exchange) that falls on or after the Disaster Date above is postponed to the General Postponement Date. The General Postponement applies regardless of the date the Relinquished Property  was transferred (or the parked property acquired by the EAT) and is available to Affected Taxpayers regardless of whether their exchange began before or after the Disaster Date. 

Option Two: Section 17 Alternative (Available to (1) Affected  Taxpayer s and (2) other Taxpayer s who have difficulty meeting the exchange deadlines because of the disaster. See Rev. Proc. 2018-58, Section 17 for conditions constituting “difficulty”). Option Two is only available if the relinquished property was transferred (or the parked property was acquired by the EAT) on or before the Disaster Date. Any 45-day or 180-day deadline that falls on or after the Disaster Date is extended to THE LONGER OF: (1) 120 days from such deadline; OR (2) the General Postponement Date. Note the date may not be extended beyond one year or the due date (including extensions) of the tax return for the year of the disposition of the relinquished property (typically, if an extension was filed, 9/15 for corporations and partnerships and 10/15 for other Taxpayer s).  

Visit for full details on the tax relief for Hurricane Debby. 

 

The material in this blog is presented for informational purposes only. The information presented is not investment, legal, tax or compliance advice. Accruit performs the duties of a Qualified Intermediary , and as such does not offer or sell investments or provide investment, legal, or tax advice.