I spoke to local owners who have been audited for increasing rents without there permission and they had to pay back the difference!

The CFTB also happens to be even more rigorous than the IRS when it comes to auditing and reviewing 1031 exchanges.  

I am a tax attorney and i still am confused, and I am willing to bet that most people will be putting it on schedul e, not paying se tax, not calling it passive, and deducting losses against w2 income, and playing roulette with audits.  

Also they must register with SEC and submit yearly audited financials and semi annual reports.

@Adam CookIn order to get succeed at multifamily syndication projects, concentrate on reading materials, coming into contact with others, group making, market analysis, audit, generation of capital, and realization of contracts.

While this does technically satisfy the requirements on paper, it would never hold up under audit and would be considered evasion/fraud WHEN discovered (not if).

Buy, refinish the floor, spiff up but don't modernize, then trot on down to the Huntington Collection and furnish with quality, durable antiques.The niche market I'd target is rich parents of out of state child actors coming out for auditions.

Frank has so much knowledge to impart. I

They may even start an actual audit of your tax return.What about private lenders then?

It falls under the automatic consent procedures, so it does not need approval - it could still be audited though 3.