Having a W2 income and claiming RE Professional Status is a great trigger for an IRS audit.

I have 17 years of corporate RE and compliance experience, so the LIHTC reporting and annual financial audit does not scare me.  

It's a budget friendly option to some of the other services, and they have engineers on staff + audit defense, but the more expensive cost seg companies ($1500-2500) will actually do walkthroughs of your property via Facetime to more granularly estimate components of your structure. 

Just learned of a dear friend who recently resigned from their prestigious position because an audit showed they used company funds for personal expenses.

That impacts me negatively now (compared to 6%), but supposedly was to prevent IRS questioning/audit in the future. 

If you are audited the IRS will want to see supporting docs (e.g. calendar, CC statements, etc).If you've reached the end of this thread and your NGMI on RE pro there are a few more options:1.

If the proper reports and documentation are not completed, you run the risk of failing an IRS audit and the cost segregation not being honored.

Location of property:Occupancy rate:Year purchased:Price paid:Current property value:Gross yearly income:Yearly expenses (if can be broken down, even better):Net yearly income:Personal insight from their experience:I hope this is a legit discussion and we can bring value to newbies like me.Thanks :)P.S - If Moderator can change the title to Share your STR Economics, seems the subject can't be edited  If you want real-actual-fact-honest-audited STR operation , you really need to read the financial report of STR specialized syndication.most of them makes quite good money if they purchase before 2016.

The IRS requires a very detailed mileage log, so if you are ever audited, you run the risk of losing your mileage expense if you simply estimate.

You can always withdraw money from your personal to LLC or vice versa, however, it's important to draft an agreement by calling it "letter of advancement" so it can be documented when you advance/lend money to your LLC or retrieve money from your LLC to your company for legal and auditing protection.