Been there done that.Our town decided that all multi's required a fire safety audit & the Fire Sprinkler System we were required to instal eliminated the need for many expensive tedious upgrades to 'suppress' a raging fire.

Each state has a Division of Real Estate who oversees broker operations & requires broker's to adhere to incredibly strict accounting procedures, audits and care of all of this money that flows in & out of their hands that is that of the client's (you) or the tenant's.

@Sean HarrisonDeducting cruises is a sure fire way to get audited and lose.

Moreover, you want to audit yourself for counterclaim risk. 

Each state has a Division of Real Estate who oversees broker operations & requires broker's to adhere to incredibly strict accounting procedures, audits and care of all of this money that flows in & out of their hands that is that of the client's (you) or the tenant's.

If you are ever audited, he IRS gets to decide based on the facts and circumstances of a transaction whether such a self-dealing situation has occurred. 

If the IRS gets busy auditing them, maybe they will leave you alone.

I'm curious what recourse a tenant would have to make sure they aren't getting screwed over by their buildings RUBS. Based on the way the property manager described the way they bill, it is a blanket and arbitrary sys...

When we used the equipment to clear the six acres last week, I took photos of before and after so that if I’m ever audited, I will be able to show that real work was done.

The idea is the little amount extra they pay in taxes doesn’t compare to how much more the property is worth when valuing the cap rate& purchase price.now the same can be said of income....overstate the income to make it look more profitable and pay a little more in taxes but make much more on the sale.it’s shady but it can EASILY happen so just wanted to throw this out there since I always see everyone “default “to verifying everything through a tax return.me personally...I have audited many businesses and when I am going to purchase a property that is just what I am going to do.First and foremost I want bank statements to verify everything.