KBKG was the first company ever to launch a self service software for properties this small and it has been through IRS audit numerous times.

What caught my ear was audits and W2.So, my approach would be to have a back up if your CPA/Enrolled Agent or Attorney says it's okay to do as you've laid out.

It is required if the IRS audits you later on.

Also, your state has the right to audit your LLC to verify you are running it correctly - this happened to one of my colleagues recently.  

As far as I know neither of these are a necessarily deal breakers but just means we need to have really good logs to back this up in case of an audit.4) I have a management company handling the scheduling of guests, cleanings after guest leaves, and check-in/check-out duties.

what should the audit include and would they share it? 

I’m sure audit rate on this has to be astronomical and just need good records?  

We currently use a simplisafe system to monitor the driveway to audit how many guests enter and if they bring pets.

I don’t want to Spend that $10k and end up unable to offset or did something weird in my tax return trigger the audit.

Having executed this strategy, nearly 100 time with our clients there is more than meets the eye, and there is an audit risk which we have seen.