My parents sold a retirement home.  They did a 1031 in a retirement homes being built.  The IRS are saying that it isn't a 1031.  We really trusted the company and the lawyers that they used.  Are they not responsible for falsely representing the 1031?

First, did your parents live in the properties?  Were they held as rental or for investment?  What position is the IRS taking?  Why are they disallowing the 1031 exchange? 

Second, liability depends on many factors, but if you relied upon their advice and you have been harmed, you may have a case.  You are going to have to prove that you relied upon their advice and that it was wrong.  Verbal advice gets into a he said she said argument that is difficult to win. 

I would be happy to speak with you if you like. 

Please provide us with more details on why the IRS is claiming it was not a 1031 and we can perhaps be of better help.

It's possible that your parents did not meet one or more of the requirements for a 1031 exchange.  It sounds like since the homes were being built that they may not have spent the proceeds by the end of the 180 days.

No,  they did not live at their retirement home.  The IRS is saying that the exchange wasn't only land but a business and it isn't a 1031.  The falisiatator      never brought this up?  They only said there is always risk involved.  If you have lawyers and falicitators involved it seems to me that all the bases are covered as to protect yourself from something like this happening.  Are we never protected when seeking and paying for expert advice?

Did they elaborate on what they meant by business?  How and what are they defining as a business?