FYI I think that low CAP rate is sub 5%, please correct me if I am nuts. 

@Linda Labbe is correct.  

Because of that, I don't believe it's necessarily accurate to paint a market picture based on inventory levels aloneIn most circumstances, these lots are still moving if priced correctly, and I can back that up as I've sold multiple of them over the past few months.

Is that correct? 

I understand there is an AGI limit that applies, restricting my ability to write off certain expenses if my AGI exceeds a certain amount.Regardless of what can/can't be written off for my particular situation, I assume the majority of the tax savings I am able to write off would come back to me directly in my tax rebate, correct?

Or its worse if the agent thinks they know some detail that again is not correct.. it puts you in an awkward position of arguing with the agent when the buyer is there.I had one a few months ago were the buyers were uber picky on one of my new builds I mean we go above and beyond and so they come for their walk through and start in again on I mean TINY things that no other inspector buyer would point out I mean somethings cosmetically are to industry standards and we are not painting the moa lisa..

Is there any details I am missing her that would she some more color into the length of the situation?

I can mobile deposit rent checks into the correct ones from the app, I can transfer money from any one account to another all from the app.  

I also assume from your profile that you live either in TX or in AZ, and both of them are community property states which matters.If all of my assumptions are correct, there are no tax consequences.

As far as fraud for the adjustments... that would all depend on whether the adjustments were correct or not.