Just make sure everything is well-documented and compliant.I want to reiterate how crucial it is to maintain a close relationship with your CPA and keep the communication lines open.

You need to acquire one or more replacement properties that are equal to or greater than $275,000 (ish).The selling expenses, costs and fees are what they are. 

Most employers now direct-deposit, so you can also cross-verify the legitimacy of paystubs (are their payroll deposits equal to paystub income?).

Lori,It’s crucial to understand the rules around deducting meals for tax purposes, especially when it comes to business-related activities.

As long as your purchase price + rehab costs are equal to or less than fair market value then you're good to go! 

My assumptions based off research is I will be able to deduct 1/2 of all allowable expenses based off the ADU square footage (My understanding of that list below)  1/2 Mortgage Interest (Not principle) 1/2 Utilities 1/2 Property Taxes 1/2 Insurance (assuming I don't have separate ADU insurance)  1/2 general house maintenance (depending on the issue and if it's related to the ADU)  1/2 Depreciation (Home value, not land divided by 27.5)  KEY QUESTION: If my mortgage (PITI) is $5400, and all of those ADU deductions equal $3800 monthly, and my ADU income is $1800 monthly, am I allowed to pay the difference in "deductions" from my real estate business income? 

You likely answered your own question...rent - mortgage is not equal to cash flow. 

Oh boy, another post about what amount of doors equals x amount per month

As with any real estate investment, thorough due diligence is crucial.

It's crucial to thoroughly analyze all aspects and consult with local legal and financial advisors before proceeding.