Does he have AUDITED returnsIf this is intended to be a stealth ad for this, I would tell every other person here to stay far away from this.And even a good 10 year record means almost nothing.

However, you will be required to have an audited statement, a CPA like Charles, to sign off on the books.

The fund will need legal, accounting & audit and administrative support, like I said it is a pretty detailed thing.

The other aspect is while some deductions and strategies might be legal they GREATLY increase your chance of an audit.If the payoff is small then risking an increased audit for the small gain might not be worth it.You need to have this discussion with your tax professional.no legal advice

I have friends here (also agents/brokers) that are using a local custodian here, but from what I've learned so far I think they are doing things that if audited would cause them some grief.

Welcome to BP, Eric....Your real estate broker may want one check for the total EMD as it will make their audit easier for compliance.

In my audits, I've never been questioned on the travel or mileage.

Has your "system" survived an audit?

The IRS has set a precedent where you can pull it off after a year of renting it, but you will have to provide a good reason for the quick exchange if you're audited(moving, job change, something...).

I am not even sure what government authority would be responsible for auditing that and/or what they would do if you put that money in operating fund.