On the other hand, pros include increased cash flow, engineer-based data for the clients CPA, audit protection (with the right firm) and the ability to deflect that recapture fee with a 1031 transaction.

After doing an audit on my time and realizing that I spent over 40% of my time shopping for materials, I knew I needed to find a better solution.

Since leveraging this tax strategy could save you significantly on taxes if you do qualify you might want to seek personalized advice, that's tough to get in a public forum, to avoid missing out or getting audited and failing audit. ...

CPAs often advise against pursuing this designation unless the time commitment and documentation are robust, as failing to qualify can result in IRS audits or penalties.The 500-hour rule pertains to material participation in specific real estate activities or businesses.

I did all of mine several months ago as they are single member LLC;s and I already have to go through fingerprinting, background checks for my NMLS license as well as audited financials for our fund.

This process is done immediately if there is an asset they can show....the wrap note that is an asset.One of my coaching clients is selling his personal residence like this after he gets done with his forensic loan audit so that he can downsize.

Syndicators advertise for people on Facebook and other sites because most cannot raise institutional money as to raise institutional money they need to have audited financials, a due diligence report done on them by 3rd party to start.

Anyone know of people that got audited for being a RE prof and what happened?

Looking for any creative input on how something like this could be structured.Taking part of the purchase price of real estate as a charitable donation and using said deduction to lower your taxes is tantamount to sending a cover letter to the IRS with your return requesting an audit.  

Quote from @Jarret Jarvis: @James Wise well the PM should have been auditing the electric every month if they have it in their names and are paying for it.