Does anyone have personal experience with specific scrutiny of a logbook during an audit?

Companies I've found and the cost they would charge for 1 property under 500kKBKG - $450 - (audit support included)Re Cost Seg - $1800 (audit support included)DIY Cost Seg - $495 (+ additional $195 for audit support)Would love feedback to before settling on one.

Which study do you think has more audit defensibility?

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

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

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

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.

Also, remember: investor-type work (reading financials, market research) doesn’t count, but operational work does — so keep good logs with property, task, and hours.REP is one of the most audited areas in real estate, so I’d strongly recommend running all of this past a CPA who specializes in REP to make sure your hours and approach will hold up.

(forgetting to log, categorizing activities, proof for audit, etc.)I’m even considering building a dedicated software/app that makes this easier.Before I dive into it, I’d love to know if there's a real demand and what features would be must-have vs. nice-to-have?

Some people will simply transfer the property anyway and then simply make sure they do not make late payments or otherwise default on the loan because most lenders won't spend the time and resources to audit the account and discover the change as long as borrowers are making on-time payments every month.