Article submitted by Mike Stinson, CCIM,  Sales and Leasing Agent at Saurage Rotenberg Commercial Real Estate

Written by Andy Gustafson, The Exchange Blog, Jan 09, 2012

Drop and swap, or changing the entity on title to reflect partner names and their partitioned interest, is a tax deferral strategy deployed in 1031 exchanges requiring proper planning and understanding of the federal tax implications. The consequences of a poorly implemented drop may result in an Internal Revenue Service (IRS) audit and civil and criminal penalties if the intent is to defraud or evade taxes. Tax fraud is defined as “the actual intention of wrongdoing, and the intent to evade a tax believed to be owing. Fraud implies bad faith, intentional wrongdoing, and a sinister motive.”

To read this article in its entirety click HERE.

Mike Stinson, a native of Monroe, Louisiana, is a graduate of Louisiana State University (LSU). A real estate licensee since 2004, Mike specializes in the sale and leasing of commercial real estate. A Designee member of the Certified Commercial Investment Member Institute (CCIM), Mike’s other professional memberships include Baton Rouge’s Commercial Investment Division (CID), the LSU Alumni Association, REALTOR Land Institute (RLI), an associate member of Louisiana REALTORS® (LR), and an associate member of the National Association of REALTORS® (NAR).

Saurage Rotenberg Commercial Real Estate is a member of the Baton Rouge Area Chamber of Commerce (BRAC); the West Baton Rouge Chamber of Commerce; the Baton Rouge Growth Coalition; the Baton Rouge Better Business Bureau; the Louisiana Commercial Data Base (LACDB); and the International Council of Shopping Centers (ICSC). Several agents, on an individual basis, are members of the Society of Industrial and Office Realtors® (SIOR), the Certified Commercial Investment Member Institute (CCIM); the National Association of REALTORS® (NAR); and the Greater Baton Rouge Association of REALTORS® Commercial Investment Division (CID).