Reconstructing a log at tax time is exactly what they look for in an audit.What we track for every entry: date, start time, end time, property address, activity category (we use the IRS audit guide categories: property management, tenant relations, maintenance coordination, bookkeeping, acquisitions research, etc.), and a brief description of what was actually done.

The other key is to record it on the same day ("contemporaneous log") as opposed to reconstruction at the time of an audit.

.: I'm looking for some Dwelling/Fire insurance providers in Illinois with higher reconstruction caps/ dwelling liability.

Real property trades or businesses include: developing, redeveloping, constructing, reconstructing, acquiring, converting, renting, leasing, operating, managing, or brokering real property.Items under your “research” category would likely count under “acquiring” real property.Items listed under your "leasing" and "maintenance" categories would count under "operating/managing" real property.Re: wages - Unless your LLC is being taxed an S or C Corp, you're not even allowed to pay yourself wages (owners of an LLC are partners, not employees).

I’m currently working on reconstructing a house I own in Tbilisi, Georgia — deciding whether to rent it out or sell after improvements.

Reconstruct.

The IRS (and courts) prefers evidence created when the work actually happens, not a spreadsheet reconstructed months later.

Earthquake caused quite a bit of reconstruction.  

Actively performing plumbing work for remodels, new construction, and commercial projects qualifies as a real property trade or business under the IRS definition, as these activities fall under construction or reconstruction.

@Ashish Acharya,Do I need to reconstruct previous K-1s for the first year only or for all missing years?