Thank you.The BP documents are allegedly updated every year, but I've never been able to verify that.

Add-Backs (Non-Cash Expenses)Depreciation (Line 13)Depletion (Line 12)Amortization (Reported elsewhere, often in Part V "Other Expenses")Business Use of Home Deduction (Line 30)One-Time Expenses (if documented as non-recurring) The "magic" you are mentioning IS adding back the depreciation upping your income. what @Michael Plaks is saying is 100% correct in that your INCOME to be used for the debt to income would be exactly the same in this case because if not paper loss is shown (the deprecation) then there is no loss to add back, so you get credit for the income.  

I have documented everything and I have 15 days to mail them the proof. 

There are two requirements to claim REP status1) 750 Hours2) You spend more time on real estate than other activities such as your W-2 Job or BusinessYou want to work with a tax professional who will be able to advise you on what hours count and what hours do not count.Furthermore, the CPA may have a nice worksheet that you can use to help you document your hours.Best of luck!

Here’s a breakdown of some of the information you may need to provide for a cost segregation study.For existing buildings:List of equipment on the propertyProperty settlement stateAny appraisals or purchase/lease agreements Property maps or blueprintsSchedules, change orders or documents for future renovation plansSupporting documents for calculating real property book valuePrevious purchase price allocations that separated assets into their appropriate allocation and valuePast site inspections and photographsDocumentation that proves or records deterioration of assetsFor new construction:Contracts or contract paymentsLand and property sizeBlueprints of projectList of equipment involved or purchasedList of projected costs including costs for land developmentApplicable site inspectionsConstruction schedules and payment requestsPhotographs of completed assets or work in progressCost segregation specialists typically have an organized plan for the collection and analysis of the information provided.

The security deposit must be kept in escrow, but it belongs to the tenant until the PM have documentation allowing them to contractually use those funds for damages. 

We’re currently using it for multi-family properties in a few core markets.While redIQ is a much more sophisticated tool that focuses on properties with over 50 units, our system is perfect for properties up to 50 units, providing an efficient solution for managing lead intake and financial analysis without the complexity of larger systems.Here’s how it works:Lead Intake & Processing: Automatically processes broker emails and key documents (OMs, Rent Rolls, T12s, etc.).Quick Review: Evaluates leads based on key metrics like IRR, price per unit, and more.Detailed Analysis: Extracts data from documents, evaluates financials, and identifies additional income sources.Market Research Integration: Automates checks on flood zones, demographics, school quality, etc.Deal Tracking: Uses Google Sheets to visually organize lead data—while not a full database system, it provides a simple and efficient way to store and track deals without the need for a full-fledged database like MongoDB.Financial Analysis: Built-in underwriting and financial modeling with automated reports.In addition to ZCG, I also own a portfolio of properties.

How should we keep records to document that status?

In most cases, neither is warranted.ANONYMITY: When you create the LLC, your name is recorded on the documents and published on the Secretary of State's website for all to see.

Taking the time to set up the right agreements and protections upfront can make all the difference in ensuring a successful and mutually beneficial partnership.