342. This Mistake Could Sink You in an IRS Audit with Justin Shore, EA
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Episode Description
In this episode of the Tax Smart REI Podcast, Thomas Castelli sits down with Hall CPA Advisory Manager Justin Shore to break down why bookkeeping isn’t just busy work, it’s the foundation of audit defense and financial success as a real estate investor.
Tune in to learn:
- Why sloppy bookkeeping can raise red flags and trigger IRS scrutiny
- The key differences between Schedule E and Schedule C—and why they matter for your rentals
- How proper categorization of expenses (like cleaning vs. repairs) can make or break your audit defense
- Why bank statements aren’t enough, and the documentation you must keep to substantiate deductions
- The penalties and costs of poor records and how to avoid them
- The line between bookkeepers and tax preparers, and what responsibilities truly fall on you
To become a client, request a consultation from Hall CPA, PLLC at go.therealestatecpa.com/3KSEev6
Get your FREE ticket to the 2025 Tax, Legal, and Wealth Summit:
www.taxandlegalsummit.com/registration
Subscribe to REI Daily & Enter to Win a FREE Strategy Call:
go.therealestatecpa.com/41JuQBX
The Tax Smart Real Estate Investors podcast is for general information purposes only and is not intended to provide, and should not be relied on for, tax, legal, or accounting advice. Information on the podcast may not constitute the most up-to-date legal or other information. No reader, user, or listener of this podcast should act or refrain from acting on the basis of information on this podcast without first seeking legal and tax advice from counsel in the relevant jurisdiction. Only your individual attorney and tax advisor can provide assurances that the information contained herein – and your interpretation of it – is applicable or appropriate to your particular situation. Use of, and access to, this podcast or any of the links or resources contained or mentioned within the podcast show and show notes do not create a relationship between the reader, user, or listener and podcast hosts, contributors, or guests. Any mention of third-party vendors, products, or services does not constitute an endorsement or recommendation. You should conduct your own due diligence before engaging with any vendor.
Tune in to learn:
- Why sloppy bookkeeping can raise red flags and trigger IRS scrutiny
- The key differences between Schedule E and Schedule C—and why they matter for your rentals
- How proper categorization of expenses (like cleaning vs. repairs) can make or break your audit defense
- Why bank statements aren’t enough, and the documentation you must keep to substantiate deductions
- The penalties and costs of poor records and how to avoid them
- The line between bookkeepers and tax preparers, and what responsibilities truly fall on you
To become a client, request a consultation from Hall CPA, PLLC at go.therealestatecpa.com/3KSEev6
Get your FREE ticket to the 2025 Tax, Legal, and Wealth Summit:
www.taxandlegalsummit.com/registration
Subscribe to REI Daily & Enter to Win a FREE Strategy Call:
go.therealestatecpa.com/41JuQBX
The Tax Smart Real Estate Investors podcast is for general information purposes only and is not intended to provide, and should not be relied on for, tax, legal, or accounting advice. Information on the podcast may not constitute the most up-to-date legal or other information. No reader, user, or listener of this podcast should act or refrain from acting on the basis of information on this podcast without first seeking legal and tax advice from counsel in the relevant jurisdiction. Only your individual attorney and tax advisor can provide assurances that the information contained herein – and your interpretation of it – is applicable or appropriate to your particular situation. Use of, and access to, this podcast or any of the links or resources contained or mentioned within the podcast show and show notes do not create a relationship between the reader, user, or listener and podcast hosts, contributors, or guests. Any mention of third-party vendors, products, or services does not constitute an endorsement or recommendation. You should conduct your own due diligence before engaging with any vendor.