If it is penalised (unlikely) the penalty will transfer as well.
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Chris. ->> Please login or register to view this content. Registration is FREE <<-
A foolish consistency is the hobgoblin of little minds
Thought for today:- Is SEO the only industry where all the cowboys are Indians?
If you use 301 redirect for you penalised site to a new domain name, then there is much chances of penalised to new domain as well. So avoid such activity.
Check whether you are actually penalized or not. Unless you did something really ztufid, penalization is really out of the question. If you are under penalization, let the domain be because you could be taking over the penalization as well. But remember when you do a 301, some of your actual PR is taken off. So don't plan to do 301s too often.