Section 8 is definitely getting  the squeeze due to them coming down hard after the audit.

Mathew Years ago, I worked for an insurance company, and go around to audit insurance agents.

I was also audited and it wasn’t an issue.

@Dan CournoyerAll of the expenses that you listed, including allocated tax prep fees, portion of the phone bill, travel etc. are equally deductible with or without a partnership LLC.You cannot arbitrarily shift partnership income between husband and wife, no more than you can without an LLC.Good thinking, but you do not gain any tax advantage, other than lower IRS audit profile.

That deadline starts ticking the day a Notice of Deficiency (results of the audit) are sent to you.

Very helpful when you need original receipt, like for an audit.  :-(  The bonus that doesn't get a lot of talk time, however, is the really good reporting that can be generated when you leverage the classes along with standard bookkeeping practices.  

And since so few are ever audited it is difficult to create a large enough bank of case law to made hard and fast determinations.  

She helped me do my 2017 taxes, and I wasn't audited!!!

Here is a sample mileage log that the IRS expects you to provide if audited.Can you survive an IRS audit without such detailed log?

If you look into the audit techniques for cost segregation, there are several methods that can be used.