So, are there disclosure issues when the house is listed...could you say study/bedroom...and I guess it could never be formally recorded at the auditors level as being a "bedroom"...

In such cases, what is done here, folks call the RE Commission, they have local auditors in the area.

I'm 25 years old and work full time as a tax accountant and auditor. 

Most investors get confused with Accounting for the books and Accounting for the Tax.For instance, I deal with the books (A/R, A/P, Closing Entries, and the likes) and I work closely with the Outside Accountant (usually CPA/tax accountants and sometimes Auditors).

If it's privacy you're after, you'll want to form the LLC and purchase the properties through them outright, otherwise there would be a paper trail if you were to purchase the property under your own name and then transfer it to the LLC (i.e. where I invest, the auditor website shows transfer history).

They are pretty adamant about it and train their auditors accordingly.However, there's some grey area around this issue.

So, county auditor shows me the Sheriffs Cert. of Sale and shows it was sold to Fannie for $115k.My question is, how do I get it from them?

It wouldn't surprise me if somewhere along the way some auditor not only disallowed the deduction but also tried to argue that the avoided demo costs should be imputed as taxable income!

Originally posted by Sean Brennan:From my experience as an appraiser, people usually push the expenses upward for taxes; but 73% is way high.YepAs my auditor said"So how do you make money??"

I do have to ask though - how is it that you are a Corporate Auditor and don't understand depreciation?