As an added benefit, since he’s an attorney certified in taxation law and also experienced in tax litigation, he can represent me in audits and - if necessary - all the way up to federal court.

We were in the logging business and doing 20 to 50 logging jobs a year on some jobs it took longer for permits etc and ended up holding a year or more tried to say they were capital gains and got that denied.Now with this person and doing one flip  it really comes down to an audit.. but generally in the business and inventory for us RE dudes is considered 7 sales in a year... at least that's kind of been the threshold I have used .. of course I 10X that for the last 35 years so for me its moot  LOL..

You will need documentation of expenses if you are ever audited for tax reasons and it is a way for you to review your property manager's work.Hope this helps!

For example if an audit discovered that they got 5 owner occupant mortgages in a six month period...Note that even when/if a note is called due, that just means you need to pay the mortgage off.

“Firms such as Bank of America and others have language in their short sale approval letters that prohibit the flipping of a property and after closing they will audit transactions to identify “flips†or “flopsâ€.

I actually think you can make a few changes and get rid of this tab completely or make a more informative “summary†tab-Not a huge fan of locking worksheets – limits flexibility and are a pain in the butt to audit-I would put the full “underwriting cash flow†on one page and focus on non-tax issues first.

Just remember that lenders still get audited and they will try to get as much as they can on their nonperforming assets.

It is something that would be very easy to get caught doing when the real estate commission performs the audits of the agents records.

My accountant does not require receipts and it is my risk in the eevent I am audited.

Deal•Lease AuditMust be Complete and AccurateMatch Current Rent Roll to LeasesConduct Lease SurveyDetermine if Certified Lease Audit is RequiredRandomly pull 1 out of every 4•Check Security Deposits, Expiration Date, Lease Amount, Utilities, other Charges i.e.