Rev. Proc. 2018-58 Disaster Postponement of 1031 Deadlines

Section 4 sets the trigger and section 17 sets the exchange rules

Section 7508A(a) lets the IRS disregard a period of up to one year for taxpayers affected by a federally declared disaster. Section 4.01 of Rev. Proc. 2018-58 says the IRS acts through a news release or other guidance that defines the affected taxpayers, the acts postponed, the duration and the covered area. Unless that guidance limits relief, it generally postpones all listed acts.

Under section 17.02(1), the last day of the 45-day identification period, of the 180-day exchange period and of the reverse-exchange periods in Rev. Proc. 2000-37, if it falls on or after the disaster date, is postponed by 120 days or to the last day of the general extension, whichever is later. The postponement cannot pass the due date, including extensions, of your return for the transfer year, or one year.

Section 17.03 adds that a 45-day deadline that fell before the disaster is also postponed if an identified replacement property is substantially damaged by it.

Two tests decide whether your exchange qualifies

First, under section 17.02(2)(a) the relinquished property must have been transferred on or before the disaster date; in a reverse exchange, the titleholder must have received qualified indicia of ownership by then. Second, you must be an affected taxpayer as the IRS guidance defines it, or have difficulty meeting a deadline because of the disaster for reasons such as these:

• The relinquished or replacement property is in the covered disaster area.
• The principal place of business of any party, such as the intermediary, lender, title insurer or settlement attorney, is in the area.
• A party or involved employee is killed, injured or missing.
• An exchange document or relevant land record is destroyed, damaged or lost.
• A lender will not fund, or hazard insurance is unavailable, because of the disaster.
• A title insurer cannot issue the policy needed to close.

How to read a news release, with a worked example

An August 2026 IRS release for storms in Indiana names the counties, sets the start date of August 11, 2026, and gives affected taxpayers until February 1, 2027 to perform the time-sensitive acts in Rev. Proc. 2018-58 due on or after August 11, 2026 and before February 1, 2027. Read three things: the start date, the covered counties and the relief date.

Hypothetical: you sold a rental in a listed county on July 1, 2026. Day 45 was August 15, after the start date, so it moves to the later of December 13, 2026 or February 1, 2027: February 1. Day 180 was December 28, 2026, so it moves to the later of April 27, 2027 or February 1: April 27, but only if your 2026 return is extended past that date. Run your own dates with your CPA.

Qualifying only through the difficulty test does not make you an affected taxpayer for other filing relief, under section 17.04. For the wider picture see what can extend the 45-day and 180-day deadlines and our guide to advanced deadline traps.