Further, if disgruntled investors sue, the sponsor has a “definitive defense” as well as a “statutory defense” in a lawsuit.

The market’s tone is defensive, with participants hedging against surprises in Fed guidance while positioning for potential volatility around next week’s data-heavy calendar.WEEKLY INTEREST RATE SNAPSHOT (Images)  *National average rates are provided by Bankrate.com and Bloomberg Professional as of 12/8/2025 and are not advertised rates from Rate, Inc.Addison, Allen, Anna, Azle, Batch Springs, Bedford, Benbrook, Burleson, Cedar Hill, Celina, Cleburne, Colleyville, Coppell, Corinth, Crowley, DeSoto, Duncanville, Ennis, Euless, Farmers Branch, Fate, Flower Mound, Forest Hill, Forney, Glenn Heights, Grapevine, Greenville, Haltom City, Highland Village, Hurst, Keller, Lancaster, Little Elm, Mansfield, Midlothian, Mineral Wells, Murphy, North Richland Hills, Prosper, Red Oak, Rockwall, Rowlett, Royse City, Sachse, Saginaw, Seagoville, Southlake, Terrell, The Colony, Trophy Club, University Park, Watauga, Waxahachie, Weatherford, White Settlement, Wylie, Dallas, Fort Worth, Plano, Irving, Garland, Grand Prairie, McKinney, Frisco, Mesquite, Carrollton, Denton, Richardson, Lewisville, or Arlington

The letter stated he was obligated to tender a defense for the buyers due to the statutory warranty deed and to contact the office immediately.We contacted an attorney on his behalf and he sent off a letter to try to figure out what next steps would be.

But that’s a gray area and probably not worth fighting over.Most stick to deducting only the clear, defensible items under §1950.5.What to do:Gather invoices for:Water reconnection feeAny charges related to nonpaymentPrepare an itemized deposit statementInclude receipts/documentationMail within 21 days via certified mail or a trackable methodThat protects you and keeps everything compliant.

Also, be sure that the chosen company offers consulting and audit defense at no additional cost to you if EVER audited. 

I used diycostseg.com … one of the best and they also provide audit defense.

I retired as an Army Captain in 2023 and I currently work as a manager in aerospace defense manufacturing managing a ~$3.8B production portfolio.

That’s the gold standard especially if you want defensible results and maximum accelerated depreciation.I’m the CEO of Engineered Tax Services, and this is exactly what our team specializes in.

If they get defensive then they're daisy chaining it without the original wholesaler's knowledge.Also, some wholesalers may try to rush your due diligence period. 10 days for a serious buyer is doable.

If you’re extreme on any of the 5 items above as a current investor I would be moving to a defensive position.