How to Claim Passive Losses without getting Audited

[Kyler J Sloan]

I have poured my cash into STR construction projects, and so actually have a loss which nearly equals my income.

Using the "STR Loophole", this should enable me to deduct these expenses from my W2 income.

However, this also puts me at risk of an audit. 

Are there any other STR investors who have struggled with this?

Is there a "rule of thumb" for avoiding an audit? -- i.e. "Do not allow your losses to reach X percent of your income". 

I just wondered if there was a threshold that I should be wary of. 

Thanks in advance. 

[Nathan Gesner]

Quote from @Kyler J Sloan:

My rentals made over $150,000 net cashflow last year, but my tax returns showed around $10,000 income because I wrote off all the LEGAL deductions. It's not going to generate an audit because it is completely normal.

Talk to your CPA and wrap your head around this. Writing off deductions is one of the many benefits of real estate investing.