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Rand replies on this topic here: http://www.seomoz.org/q/can-penalties-be-passed-via-301-redirect There is not much more I can add. I would love to find the time to perform some experiments and see results first hand. My best guess is some penalties will pass while others will not. This variance would be logical and explain the mixes results which are reported. Some people seem convinced one way or the other. For example, a penalty based on manipulative links would be passed since those links are now pointing at the new site. A penalty based on manipulative on page tactics would not be passed if those tactics are not used on the new site.