That way it is impartial and in the hand of a third party so there is no resentment or claims of not doing the best for the property in terms of tenant placement etc. 6.

And those bank statements tell a story that would trigger an IRS audit if the IRS saw it, not because they're broke, but because they're good earners, but comingling biz and personal finances, presumably to write everything off and look broke to the IRS.From CoreLogic -- "The non-QM share of total mortgage counts declined during the pandemic and reached its lowest level in 2020, at 2% of the market.

It's always better to be safe than sorry and end up having an audit next year. 

It's important that are able to collect and organize these documents as we generally get audited each policy year prior to renewal.  

@Ryan Melander, An audit of a 1031 if it ever happens will focus on documentation and timing of the 1031, arms lengthness of the transaction, and chain of custody of the proceeds.  

However, you'll want to have supporting documents in place to prove your intent should you get audited.  

Also, you'll probably be audited eventually.

Under audit the IRS takes the position that the property is placed in service when it is first being rented, not when you list it for rent.From a practical standpoint you will find yourself pissing into the wind by trying to argue it was placed in service before you completed all of your repairs/improvements.

I have 3 accounts: Rent, Operating Income, and DepositsI would suggest NEVER mixing any of your rental income/expense funds in with your own personal accounts... if you were to get audited it makes life just that much harder to show where the money is flowing. 

The new building was likely larger and even had more of it.I haven't had any clients audited on CSEG or 1031 exchanges nor have I seen any rulings.