In both cases, use a clear management agreement and separate bank accounts to ensure clean, audit-proof records.This post does not create a CPA-Client relationship.

My accountant wants me to start doing this in the event of an audit being I’m starting larger projects and will be implementing cost segregation Thanks

Ensure you get detailed monthly statements for clean bookkeeping and audit support, and vet your PM thoroughly before closing, as their performance directly impacts both your financial returns and your tax strategy.This post does not create a CPA-Client relationship.

Business Registration & RFCTo rent legally, you need an RFC (Mexican tax ID) and tax regime registrationMost investors opt for the Régimen de Actividad Empresarial (Business Activity Regime)This allows for deductions, including property maintenance, utilities, and management fees⚠️ Warning: If you operate under the radar and don’t declare income, you risk fines, audits, or being shut down by local authorities or building management✅ What You Can Do:Before buying, ask your agent or attorney for:The zoning classification of the propertyCurrent municipal rules on vacation rentalsHOA bylaws and restrictionsRegister your property with SAT and work with a bilingual accountantUse Airbnb’s tools to collect taxes automatically (if supported in your state)Stay informed — these laws change often, and what’s allowed today may be restricted tomorrow💬 Final Thought:Owning an Airbnb in Mexico can be highly profitable — but only if you play by the rules.Regulatory compliance = long-term cash flow.Don’t cut corners.

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

Be sure to maintain detailed time logs and documentation of his involvement with the commercial property, as the IRS closely audits REP claims tied to large losses.This post does not create a CPA-Client relationship.

Tax Enforcement for Short-Term RentalsWith platforms like Airbnb now cooperating with the Mexican tax authority (SAT), we’re seeing:Increased cross-checking of income and bank depositsSAT audits focused on foreigners who rent but don’t declareMandatory tax declarations tied to property usage💡 What this means: If you're planning to operate an Airbnb, expect stricter enforcement and digital reporting by 2025.3.

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

In order for something for something to be respected by the IRS as a "cost segregation" study, a qualified engineer needs to come out to the property and do a site visit (see the IRS Audit Techniques Guide).  

It does not appear there is anything else to report.The end conclusion is probably not going to be promising for investors in this fund as Stuart mentioned he had concerns and they also have not submitted audited financials in years which based on my experience from others who do a Reg A and do not submit financials it has meant they are not good.