Not Every 1031 Exchange Goes As Planned

A recent case came out of U.S. Tax Court that illustrates the dangers of structuring complex 1031 exchanges to avoid significant capital gains taxes. It also illustrates the reality that even the top tier accounting and law firms can make a misstep when it comes to advising on the more nuanced transactions.

In the end, the plaintiffs, a power company, was forced to pay taxes and penalties related to $539 million in tax benefits it claimed from a disputed 1031 exchange transaction.

The case is and makes for an interesting read for anyone involved in 1031 exchanges.

To find out how we can help you find and close on your next 1031 exchange property or to learn more about the exchange process and our qualified intermediary services, please visit our website.