. $1m property also isn't $800k in building value).The 2 recommended options are DIY modeling or Cost Segregation:DIY Modeling: Come up with some expression you could reasonably defend in county court if you get audited somehow.

Since your attorney is the one left defending you in a lawsuit, take direction from them. 

The large lapse in time may make it hard to defend your claims, so take extra care.

His point was to make sure you are OK defending your deductions. 

Is the cost of the furniture worth having to defend your actions to your realtor association?

The few hundred you spend getting a lawyer to do it right for you will save you thousands to defend a lawsuit on something you "downloaded" from the internet.Any time you "pool" money, 99.999% of the time, it will be called a security. 

They say that their tax professional tells them they could "defend it and win in court".

They're hoping you'll get scared and offer to buy them off for $1,000 instead of paying $2,000 for an attorney to defend you in court where you could possibly lose even more.I wouldn't fall for it.

However that means little in most cases, unless the defendant just pays...but if he was going to he would have already, right? 

My comment back, and everyone since, has been to defend myself, as I would never suggest illegal activity to anyone.