Any other cost seg software recommendations which doesnt cost thousands of dollars and provide audit guarantees? 

However, using STR in an attempt to qualify for crossing real estate investment expenses and depreciation over to your W2 income triggers audits.

How many current IRS audits or court cases are pending with S.

If you got audited and had never made any efforts to rent it and just ran late or too long to sell, perhaps you would run into problems.I wrote about this is my blog - but here is the key part below. https://www.earlwhite.law/guide-1031-exchange-new-jersey/“Dealer Property” Not AllowedProperty held for resale (often called “dealer property”) cannot be included in a 1031 exchange.

I do not know if this is realistic or farfetched.Thank you While we talk about returns, one of the ways to gather whether your investment may yield successful results is to ask the sponsor if they will provide audited financials from their prior offerings?

If you get audited good luckNot a cpa or tax professional just telling you what has been relayed to me by several CPA’s

The first step is to schedule an audit with RISE, (riseengineering.com) which is free for MF homes.

My CPA said in the event of an audit it would be difficult to justify that 50% of my activity isn't coming from that business that produces significantly more income even if I can meet the 750 hour rule.

Its a headache since some to most policies will audit you every year. 

- assuming 500hrs each, we have spent enough time this year to get to that but wondering if thats a red flag for IRS with high chance of getting audited (we travelled 7 times over the past year to work on the unit and spend at least a week each time excluding the time we spent managing the guests)- Lastly, our understanding is that each can take 50% of the final offset to our W2 assuming we prove material participation eligibility.