IRS Seeks to Stop Promoters of Inflated Real Estate Tax Claims

The government is looking to sanction three real estate professionals for their alleged roles in orchestrating fraudulent tax deduction claims.

The Department of Justice filed suit to enjoin Joseph D. Johnson, Andrew Bryant, and Christopher Bryant from organizing, promoting, selling, or assisting in “bargain sale transactions,” which they then use to attempt to obtain charitable contribution tax deductions.

In a bargain sale, a property owner obtains an appraisal on a property and then sells it for below that price. They can then claim a charitable contribution for the difference. Under IRC Section 170, the appraisal must be for the ...