Audit trails are set to discover such activities.The other issue is folks getting "gift funds" mixed up with a "gift", nothing wrong with a gift given to you and explained as opposed a gift to buy a property, strings are attached, the gift is for this use.

Then, Intuit increased the price to $125 per year and then Intuit stopped selling the tables and forced everyone to switch to Quickbooks.I had no problem with trying to switch to Quickbooks and I purchased the full version three times for about $500 each time and literally threw the software in the trash because it asked too many questions during the setup, was cumbersome and difficult to use, was so complicated it left room for making too many errors, had too many whistles and bells to deal with and there three things that make me hate Quickbooks with a passion and they are:1) it is web based and super slow when changing screens, 2) the software has so many screens to enter information on it is difficult to know whether or not information you enter goes to where it was supposed to go e.g. you may accidentally type in a wrong number, or you may enter data as a debint when it should be a credit and3) Intuit is greedy and found that they could charge $109 per month for the software and the tax tables and that comes out to $1308.00 every year, or $13,080 every 10 years compared to the $99 or $990 every 10 years I was paying for Quicken that was simple to setup and use, but it still had some file storage problems that were fairly frustrating to deal with.I had a major IRS audit about 10 years ago and it was the first major audit I dealt with for several real estate properties in California, Idaho, Las Vegas and Colorado.

Have you looked into a Loan Audit?

I've been audited by the IRS several times.

That could helpful just to do your taxes and have records for an audit...sounds like the details for documenting could be better....Liability wise and for employee taxation issues, you can find some rules both the irs uses (search employee versus independent contractor on the IRS site) and your states outline of the distinction related to liability will probably be similar but may also focus on factors like whether you are controlling the means or just the ends (telling them the outcome is okay but not the exact means)...are you a client/customer or supervisor here?

More detailed overview coming soon, but some quick details...When: rules become effective in 60 days.What: There are 2 "tiers"Tier 1 - requires SEC and state blue sky reviews & fees, raise up to $20M per year, open to unaccredited investors, no audit requiredTier 2 - requires SEC review but no state blue-sky review ("preemption"), raise up to $50M per year, also open to unaccredited investors (limited to the greater of 10% of income or net worth), annual audit required, must use a registered transfer agent (FundAmerica will be helping to simplify this for issuers)Both - are open to unaccredited investors, can be used by startups as well as existing businesses, and are exempt from 12(g) registration thresholdsHow: Preprare offering doc's, get your audit done, use "form 8a short-form", submit draft offering to SEC, filing electronically via EDGARCompare to 506(c) - takes way more time to launch an offering, and far more costly in terms of legal fees, accounting costs, and annual reporting obligations.

You will not be able to 1031 the funds into the building of the new property as you already own the land, this is true even if you transfer it to a new entity.This would be better fit for a phone conversation to asses details.The only options I truly see to you are possible long term capital gains dependent upon the nature of the original transaction/property purchased.I think as you talk about it, you'd get hammered in an audit.

Unless you have personal friends with no financial stake that are using only that programs ideas to find auditable success I'd pass.

Besides, when you have an Accountant do your taxes, less chances of you being audited. 

Just for auditing reasons.