Also, expenses against zero income is an audit flag.If you do decide to claim some expenses in 2017, then a careful planning of the rehab is due.

Is must be dotted and Ts crossed to pass audit scrutiny.

I kind of want to report it to the IRS as tax fraud and evasion, but I don't have faith they would actually pursue it (when they can just audit those of us trying to do things right) and have come to grips that it is probably better to just let it go and move on.Thanks for all the input everyone.

I want to make sure I claim EVERYthing possible and make sure I do not claim anything funky that will be a redflag for an audit, not that I have done anything wrong, but I just don't want to get audited! 

I've read in other tax forums assertion of IRS auditing real estate pro's... 

This is why when buying a business for instance you rely on audited financial statements because someone typically goes to jail or looses a license for knowingly providing false information.

I'm in the Miami/ Plantation areas consistently for audit work.

My advice is to have a real estate attorney who is very experienced in forensic audits do the prelim work for you.

,identify cash buyerstrack most productive brokersfind most productive SS and or foreclosure agents (will be doing the same for probate once started)determine "repair spread" by identify similar distressed and ARV home average pricesgenerate URL to quickly and easily see area and home on Google (the desk audit) ... especially if prioritization ranking is favorable or a marketing response obtainedI will also be doing hand-written letters - not sure which group would be best to use that effort on - probably probate, but not started that yet.

But most of the auditing tasks can be (and usually are) done remotely.