I guess even if the IRS audits you can show the structure is worth at least 90% of the purchase price.For example if the house cost $800,000 according the the tax bill the structure is worth like 100k but definitely no one will build you a structure for 100k.What do you think?

Not only does this help ensure you're taking full advantage of available deductions, but it also provides essential protection in case of an audit.7.

Also possibly if your income was below $150,000.You should ask your CPA how you were able to offset your W-2 income with Rental losses.At the end of the day, you are signing off that the return is correct.If there is an audit down the road and you lose, you can be subject to taxes, penalties and interest.

These records will be essential in substantiating your claim as a real estate professional if you are ever audited by the IRS.Remember that tax laws and regulations can change, so staying up-to-date and working with a tax professional is essential to ensure you're maximizing your tax benefits while following all guidelines.

It was implied that we would likely get audited and they would not be able to defend that claim. 

The IRS will appreciate it when they audit you.

Sure, life happens and I don't suspect that the authorities will be auditing you if you leave in six months...  

I'd go with a quality PM too that has no problem being audited.

You need to file suit in circuit court, pay filing fees, post bond, file notices and affidavits with the court, obtain an order ratifying the sale, every sale is audited, issues concerning surplus are dealt with by the court, etc.

Deals are audited from time to time, which can include a review of transactions.