1031 Tax Penalties

Cincinnati, Ohio, Tax Lawyers: 1031 Tax Penalties

When properly structured, a 1031 property exchange allows owners and investors to defer federal and state taxes on gains from the sale of property. In the past three years, however, the IRS has sharply increased the number of audits it conducts of 1031 exchanges and has ratcheted up the penalties against property owners, lawyers, tax advisors, CPAs and others involved in the transaction.

At Strategic Property Exchanges, LLC in Cincinnati, our lawyers understand that 1031 exchanges can be very complex and confusing to property owners. We believe that it is not acceptable for a lawyer or accountant to hand out a booklet with examples and rules and expect their clients to figure out complex tax rules and requirements on their own. That is why we provide a high level of individualized and personalized service. From start to finish, our lawyers provide one of the most complete service guarantees in the industry, backed up by our federal tax opinion that guarantees your 1031 exchange is in full compliance with applicable federal tax laws. Period.

Guaranteed 1031 exchanges

There are many types of lawyers and CPAs who do 1031 tax exchanges. While some are knowledgeable tax attorneys, many others are not. In the past, many property owners have gotten away with poorly structured 1031 exchanges because the IRS rarely conducted audits - and usually waived any penalty if you said you relied on a tax advisor. However, the days of lax enforcement are over.

Today, the IRS will assess the taxpayer a 20 percent penalty if a 1031 exchange was done wrong. The penalty will be waived only if your tax advisor is an expert and gives you a written tax opinion. The majority of lawyers and accountants who do 1031 tax exchanges cannot provide this opinion because they are not experts. In addition, the IRS will assess individual tax preparers (whether they are lawyers or accountants) with a $1,000 penalty if they do not follow the rules. Corporate tax preparers will be assessed a $10,000 penalty.

At Strategic Property Exchanges, LLC, we guarantee our 1031 exchanges and offer written tax opinions. Our founder, attorney Stephen L. Robison, is a board-certified federal tax law specialist and a qualified intermediary for 1031 exchanges who has been named an Ohio Super Lawyer in taxation law by Law and Politics Media since 2002.

For more information

To schedule a consultation about 1031 like-kind exchange, please call 513-412-3483 or fill out the contact form on this Web site. From our offices in Cincinnati, Ohio, our lawyers represent property owners throughout Ohio.