In addition I got audited by the IRS the first year I took the Go zone bonus depreciation.

Brandon Turner, I'm sure Steven Hamilton II will swear he NEVER thought he'd hear this from me ... but let me just say... you don't need a CPA... you need a "real estate knowledgeable tax pro"That person may or may not be a CPA..Just don't limit your search to that designation :) There are some excellent tax guys and gals who choose not to be a CPA.Now, if you need audit work or some such done, that's a different story ;)

In the end, if you utilize your CPA"s advice and get audited, the IRS will place the burden on you to prove you handled your financials correctly, not your CPA.

@Moshe EisenbergFor flips you might want to consider how to have LLC taxed as a S-Corp for investments held less than a year.The benefits are that you can minimize self employment tax, access more tax deductions like car, fuel, marketing, and mileage.It also eliminates schedule C and lowers audit risk.I am not an accountant so please consult yours to see if an S-Corp is right for your situation.

I'm no accountant,  but I can smell an audit waiting to happen.  30% down. 30 year amortizations and rates in the 8's.

Thinking about claiming my downstairs room as a home office this year but I really don't want to get audited! 

CPAs are licensed by state but aren't generally restricted from practicing in different states unless they are performing public accounting services (think audits).

When you start ramping up your volume of flipping it is likely that you will be audited by the wc people.

Along with the credit repair operations, we also do Debt Consolidation, Credit Rebuilding, Credit Restoration, Budget Analysis, Mortgage Pre-qualifications, Mortgage Audit, Loss Mitigation, and Repossession and Foreclosure Prevention.

Amending only the open years raises the possibility that the Service would treat the amended returns as an unauthorized accounting method change on audit, which would preclude using 2004-11 to take the allowable depreciation in the year of sale if the sale is within five years.