The software is available for residential rental properties up to 6 units with a depreciable tax basis of $500,000 or less (purchase price less land).You should also read the IRS Audit Technique Guide (https://www.irs.gov/businesses/cost-segregation-audit-techniques-guide-table-of-contents)Please note, per IRS: "The preparation of cost segregation studies requires knowledge of both the construction process and the tax law involving property classifications for depreciation purposes.

One thing to keep in mind is if you own multiple properties that you are managing yourself..you will have to assign those properties to a property management company  or go through the quarterly audit process.

Some states are apparently moving to audit all 1031 exchanges.

So I have good records to support any action I have taken should I ever be audited, need to prove expenses or at tax time.

If you are going to give up all control and invest in RE remotely, though, then you should just buy a REIT and be done with it, at least then you'll be diversified, with a security with fully audited financial history, world class management, and scale.

@Valerie HamiltonPublication 463 mentions when meals can be deductible.You can deduct the cost of meals in either of the following situations.It is necessary for you to stop for substantial sleep or rest to properly perform your duties while traveling away from home on business.The meal is business-related entertainment.I would argue that if you traveled out of state, communicated with the tenant, made some repairs etc that it would qualify under the first exception.Many tax practitioners are wary to take deductions because they fear it may raise a red flag and you get audited.

Probably why you were selected for an audit.

Got audited?

On top of that, there are regulatory agencies that each and EVERY financial institution must answer to, and EVERY financial institution is audited to ensure that they manage foreclosures in a uniform and consistent, legal manner.

@Ryan DeasyYou may also need to keep track of how you accumulated your hours in the event that there is an audit.