I personally recommend working with a CPA who prioritizes integrity and accurate tax return filings, so that if you're ever audited, you won’t face back taxes, penalties, or interest.

Also, I know this status can sometimes trigger an audit.

The number of loans that are audited post closing is ridiculously higher than it was during 2020/2021.

I've been working with job titles like construction project manager, who doesn't know a lot about construction but coordinates architects, engineers, GCs etc, the VP of RE management, who also does not know a lot about construction but oversees site selection, lease negotiations, property management, RE accounting who writes my checks and does annual CAM audits, and other jobs like that.

You can always withdraw money from your personal to LLC or vice versa, however, it's important to draft an agreement by calling it "letter of advancement" so it can be documented when you advance/lend money to your LLC or retrieve money from your LLC to your company for legal and auditing protection.

Suzette,Stay away from any company that offers you a Loan modification or a foreclosure "Audit" and what ever new name they call it now a days.

If you are audited the IRS will want to see supporting docs (e.g. calendar, CC statements, etc).If you've reached the end of this thread and your NGMI on RE pro there are a few more options:1.

I’m an CPA working in the audit practice and dreaming about starting a real estate investment path for me an my family.

You're right that it is new, and there is not precedent (to my limited knowledge) that this has ever been challenged and succeeded in an audit.

I think using a value outside of that is going to be tough to defend if you are doing a cost seg, which already attracts quite a few audits.