1031 embezzlement by Intermediary

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  • Harold Ingram
    Junior Member
    • Dec 2013
    • 1
    #1

    1031 embezzlement by Intermediary

    My client sold real estate for 1.2 million. Part of the 1031 was complete. The Intermediary that my client chose to handle the tax free exchange
    embezzled $700,000 of my clients funds along with many other individuals funds he was holding. At the present time it appears that there is no
    way this amount can be replaced by the Intermediary.
    Any help will be appreciated.

    Harold Ingram, CPA
    Tags: None
    • ATSMAN
      Senior Member
      • Jul 2013
      • 2415
      #2
      Had a similar situation with a client where the builder they chose ran away with $30,000 deposit. Left USA! Police report was filed, a demand note was made and then we did the casualty deduction.
      Taxes after all are the dues that we pay for the privileges of membership in an organized society. - FDR

        Comment

        • WhiteOleander
          Senior Member
          • Jun 2005
          • 1370
          #3
          Also, since the 1031 failed, it will have to be reported as a sale and any tax due, paid.
          You have the right to remain silent. Anything you say will be misquoted, then used against you.

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