After doing an audit on my time and realizing that I spent over 40% of my time shopping for materials, I knew I needed to find a better solution.

On the other hand, pros include increased cash flow, engineer-based data for the clients CPA, audit protection (with the right firm) and the ability to deflect that recapture fee with a 1031 transaction.

.- If you chose to set up your LLC as a pass-thru entity, then you will need to supply your SSN.FYI - to avoid getting nasty letters from the IRS about errors (which might cause us to be audited), we will ask for a copy of your EIN assignment letter or a copy of your SSN card to confirm those numbers.

It all boils down what you can demonstrate should you get audited. 

PLRs can NOT be used or cited as precedent should you be audited, and it is always possible that the IRS could still disallow this 1031 Exchange.

What did their Fraud or Audit department tell you?  

Avoiding the ravages and savages of the IRS audit system.

Is it a reputable company and will the documentation provided from the study hold up in an audit?

I also would like to reduce the audit risk due to large bonus depreciation. 

This process is done immediately if there is an asset they can show....the wrap note that is an asset.One of my coaching clients is selling his personal residence like this after he gets done with his forensic loan audit so that he can downsize.