You’ve got depreciation recapture, passive activity rules, AMT, and audit risk to manage.

If lower than market price, and this is an audit lottery. if you claim business rent, then must show rent income. can claim the deduction of utility etc... as well.

Additionally, I can help incorporate receipts and statements directly into transactions for added assurance in case of an audit.

There is no official IRS form so the best practice is to use a simple spreadsheet or tracking app you can update regularly and retain for audit support.

., time spent on guest communications, cleaning coordination, repairs, marketing, etc.).Proper documentation not only supports your position in the event of an audit, but it’s also essential for meeting the IRS thresholds for material participation under the STR exception.happy to help.

Insist on a year-end tax package, clear classification of reimbursements vs. income, audit-cooperation language in the contract, and guaranteed data-export on termination.

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

Im involved personally in other similar syndications and they are doing well with positive monthly returns and real audited financials that show year over year gains.

It sounds like I'm begging for an audit lol.

In the event of an audit, you'd need to prove your passive.Assuming you're passive, then you can buy long term or medium term rentals and do a cost segregation study