Unfortunately we were in the middle of an ISO recertification audit when I got back from work, so the timing wasn’t good.

Oh and for audit purposes most auditors will accept 50-80% of your cell bill as an expense unless you can justify on a bill by bill basis that your percentage of business use is higher.

Yes it is enforced, you'll have at least two loan reviews after you make the loan, review means audit.

I can imagine a plumbing audit and some updating to low-flow may improve these numbers but market demand supports the tenant paying some portion if not all of their portion of the water bill going forward.

As the majority of real estate owners do not have audited statements for their holdings it is not uncommon to rely  on either management prepared operating statements or tax returns.

The search filter is great.When I sat through that 3 day IRS audit they loved the NEAT reports & rarely looked at the supporting receipt printouts.

The AZDRE will audit broker's transactional files and any violations can result in fines.

The funny part was I sold the house and paid off the car loan 3 months later.To top this off the family member who loaned me the money was audited by the IRS !

@Josh Deno If you are audited, you will need to show that you had the intent to hold the property for rental, investment, or use in a trade or business.

Or does it just get accepted as a matter of course, and then they audit you later if they want to?