The property taxes and mortgage interest for the personal portion would then be reported on Schedule A as normal.Trying to pay yourself rent means that you're also trying to declare that the building is 100% business related, which would be untrue and, in the event of an audit, would likely cause some penalties.Keep doing what you're doing - adding enough to the account to cover the personal portions of your bills, but do not declare this as rental income.

Hello All,I am an aspiring investor considering an acquisition of existing Adult Family Home (AFH) in Seattle area and am looking for CPA and lawyer who have experience with this niche and can help do financial audit/due diligence of the AFH, provide advice on structuring the business, and help with contracts.Any referrals are highly appreciated.Thanks,GT

CPA‘s and tax offIces all use sImIlar software.One Important questIon to ask, is if the IRS does an audIt based on how the return was done, versus you not brInging In a document, will they stand by their work.

A person whose business practice is flipping who just happens to hold on to a property for more than a year while a renovation is underway is  more likely to be disallowed  upon audit than a person with a long term buy and hold business model like @John McAuley who happens to have an "oops" moment on a property.While longer is preferred, actual demonstrable intent will rule the audit.  

@wayne brooks, Some states can and will audit items of your return.

What I mean by that is that the IRS has the ability to audit your overall business and classify you a dealer if you are known to flip houses, or sell on contract or only hold rental property for a short period of time.

So, even THAT inflation, wasn't - it was and is price gouging, pure and simple.the BLS would disagree with you that the housing shortage starting with under building around 2000 was artificial. the same BLS is reporting the housing supply shortage of about 4 million today. predatory lending was only a a small part of the Great Recession collapse in lending and housing. there was fraud up and down the mortgage pipeline with little to now auditing and over sight. mislabeled loans in A paper tranche MBS, derivatives, derivatives of derivative, credit default swaps, etc. a lot more complicated that stating predatory lending.no, that is not the literal definition of price gouging. price gouging is raising price beyond what is reasonable from sudden demand. all prices are rising not one industry or one company. that isn't price gouging. that is inflation.

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.

@Kelly ByrdSounds like you may have already set up your LLC so maybe this is too late, but in case you haven't or for any other readers, there are brand new partnership audit regulations which drastically change the course of audits of partnerships (including LLCs if treated as partnerships).