To minimize audit risk, it’s advisable to choose “Other interest” instead of “Mortgage interest” when reporting.Part 2: Forms 1099-INT from Investors to Private LendersForms 1099-INT Explained: Similar to the interest earned on savings accounts, Form 1099-INT outlines the interest that must be included in taxable income.

My thought is that if the IRS audits me, I'm perfectly capable of showing how "Joe Smith" paid my venmo $1K, I transferred it to my personal account, I also have a lease agreement identifying that $1K and Joe Smith's name.

assuming work completes after closing.In the event of an audit, is it a red flag if we claim an "improvement" after the closing date occurred?   

You need to be comfortable that the value of the real estate you report to the custodian will pass an IRS audit. 

When it comes to audit-sensitive areas like STR and REPS, I think the best bang for your buck is to pay someone to do it for you who has been doing it for years. 

Otherwise if the IRS sees a 1099 against an LLC's EIN but never know where that income flows into, they may request an audit?

Imagine she gets audited and it's determine basis was incorrectly calculated and she owes money.

Also remember the time these returns will take to amend along with the possibility of opening up audit periods/red flags with the IRS due to amendments.Doing this yourself on turbo tax likely won't be your best bet considering all of the details.

Chris Voss calls it the Accusation Audit, where you start out by listing all the problems and costs, and then ask how can we get this done.Every deal and seller are unique, and the goal is to find out their motivation and how you can solve it, quickly.I would definitely re engage the broker in the week to come to see the activity on the deal, and if it has tradedGino

The last thing you want is the IRS showing up on your door step or for you to be caught in an audit and unable to support your stance. 4.