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? 

Communication, turnaround time, formatting, ease of audit, flexibility? 

This way everything is audited.

(make sure you audit it and give it a peer review).

We invest exclusively in the midwest and have found an audited return of 31%+ over the last 12 years.

Yep, it's all legal until the forensic audit happens.

The cost is 3k and they will back you up if you get audited.  

Apparently you can take the same write offs personally as you can in an LLC, just keep track of expenses diligently and be ready to defend them in an audit, which you should do for an LLC anyway.