It also becomes a business/probability decision as well because the reality is that I have been doing these for right around 14 years and have handled several a month that have exceeded 20 plus million and never once has a client be selected for an audit. 

@Alex Cuevas Welcome.should be an interesting meeting next Tuesday Free Energy Audits to help you determine upgrades, correcting your worst Landlord mistakes and picking up the pieces from Dave Lindahl's Multi Family & Ultimate Partnering 7 Bootcamps

.= appreciate your work more...if let's say their voucher is for $1,500, please consider this also includes utilities allocation so your actual total pay may be $1,300. bonus points for a lot of insulation in the walls and attic+-crawl space. my local HA has some discounts available with local vendors for energy audit and property insulation/green stuff. you harden your property by going to nice and  abuse-resistent: check your local competition and go one level above. kitchens and bathroom sells the property. also go directly to the heart of the head/ lady of the house!!!

This is not illegal, because those fees are technically available in the state from some hypothetical settlement services provider that you could hypothetically use (if you were hypothetically an idiot).And you see a nice sexy bottom line number that you find appealing, and pick your lender based in part on "lowest fees," as you did.Then, a week or two into escrow, the lender "discovers" the actual title/escrow fees (they naturally don't even bother asking for them until it's too late for you to switch lenders, and the appraisal is done, etc, because they don't **want** to discover the actual fees juuust yet).Because they quoted you "real" title/escrow fees upfront, and because a full thorough audit will reveal that the lender did not "discover" the actual fees until a day or two prior to you receiving the "updated" disclosure, no law has been broken and this is a lawful practice.I personally go the other way, and quote the most expensive title/escrow fees in my market for purchase transactions.

You don't apply for it, it is basically you saying, yes - I fit this and then if you get audited the IRS will ask you for proof.

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.