Passive income is only from REAL ESTATE in which the owner does not take an active interest in the management.I remember back in the '90s this was a high interest subject to IRS auditors, not sure about now.

So whenever you close, the meter will start running because your auditor's office will (probably) recalculate your taxes at the new purchase price and without the deductions (if your community elected a half-decent auditor).

I find it difficult to believe that an IRS auditor would look deeper.2) A refi done very shortly after purchase can be viewed as a "delayed financing" situation.

I would highly recommend meeting with the auditor instead of mailing it in.

The outstanding mortgage debt is ~$60,000, and the fiduciary is assessed the property at $137,000 based on the county auditor's tax value.  

i can speak for counties in ohio now.. but all you have to do is go to the county auditors web site and do a search on the property....

As a former auditor, "what if" risk based approach has been drilled into me so I'm all to familiar with preparing for worst case scenarios just in case.

@Yuttana Chawengsub If you have an agent that is an investor you're golden...my normal process would be to run a comp report in RPR and Core Logic...pull historic MLS records, review auditor data...and essentially any other data to assemble a clear picture of the property...then we start to talk through analysis...based on investor need of course....pretty simple stuff, generally. 

I'm a CPA - been an auditor for about 10 years now.

Question for other investors out there.. have you ever (personally) contacted the county auditor and worked with them to get your building valued lowered to get a lower tax bill?