@Elealeh Fulmaran that’s exactly what we’ve done, but we are auditing all of the for the last year.

The funds in this case were likely held in their individual name, and a death, bankruptcy, or other could affect the ability to close out and complete the 1031 exchange.The safety and protection of exchange funds should be of utmost importance, which is why you should always work with a qualified intermediary that has some sort of regulatory oversight; not just an internal audit or something, but real regulatory oversight with an outside, independent regulatory audit. 

To lower audit potential a partnership LLC is 1 tenth the likelihood of IRS audit but you need a partner.

Everyone talks about the excitement of the refinance — pulling cash out, locking in new terms, and getting ready to repeat the process.But here’s what I’ve seen a lot of investors forget:What happens after the refi matters just as much as before it.Once you refinance, your numbers change — your basis, your loan interest, and your depreciation schedule.Most people never revisit their books or update their records after closing, and it slowly creates a mess.You’d be surprised how often investors forget to:Recalculate depreciation based on new cost basisAdjust their loan amortization and interest deductionsTrack how much cash was actually pulled out vs. reinvestedThose little details might not seem important now, but they can cause major confusion (and extra taxes) down the line — especially when you go to sell or refinance again.The BRRRR method works beautifully if your backend systems stay clean.So when the refi funds hit, take a breather, update your records, and make sure your financials tell the full story.That’s how you stay scalable, organized, and audit-proof.Curious — how do you stay on top of your numbers after the refinance?

They also get audited from time to time.

Clearly the more stays,  the more defensible in an audit. 

REPS is one of the more heavily audited areas of the tax code and comes with a fair bit of nuance.

They will audit you and audits are not cheapFrom a business standpoint, does not make sense to spend $3-$5k per state that does not need a license in.

Hoping to hear some real world audit feedback for those who thought to do this.

Clean, simple, and audit-proof.