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Taxpayers affected by the 2025 California wildfires have until October 15, 2025 to take advantage of special relief measures granted by the Internal Revenue Service (IRS), including extended deadlines for 1031 Exchange transactions. The extension applies to individuals and businesses in Los Angeles County and other federally designated disaster areas, as outlined by FEMA.
Key Relief Measures:
- 1031 Exchange Extensions:
- The 45-day identification period and 180-day completion period for eligible exchanges are extended to October 15, 2025, or 120 days after the original deadline, whichever is later.
- Applies to exchanges initiated between July 11, 2024, and January 7, 2025, with additional provisions for reverse exchanges.
- Tax Filing Relief:
- Affected taxpayers have until October 15, 2025 to file federal returns and make payments originally due between January 7 and October 15, 2025.
Strategic Tax Planning Opportunities:
- Cost Segregation: Accelerate depreciation schedules to improve cash flow.
- Bonus Depreciation: Maximize first-year deductions on qualifying assets.
- Turnkey Investment Listings: Expedite acquisition of replacement properties for 1031 buyers.
Taxpayers are encouraged to consult with qualified tax advisors to determine eligibility and optimize their exchange strategy. For full guidance, visit the IRS disaster relief page or review the Greenberg Glusker advisory.
