In a nutshell, it is not a good candidate. james12lucy is correct in saying it's heavy (and in the front), under powered, and relatively pricey to fix. However, if you talk to any rally driver that's probably what they'll say about their car as well, and depending on what class you run in, that may not matter in terms of competitiveness. I would also say that there are better AWD options, but if you just want to have fun then that kind of thing doesn't really matter too much either.
The biggest wearables on a rally car besides brakes and tires are body parts and control arms bushings as well as the control arms themselves. Gravel beats down on the aluminum and wear them out after a season or two, depending on how often you run and how many gravel guards you install. Expect to get comfortable pressing in new bushings and replacing arms. If you run non-pump gas, expect to spend a lot on fuel system components for replacement. Beyond that it really depends on how you build your car, because depending on what class you run in you could be completely stock, or very much open (customized), so what you have to fix/repair/replace depends on what you have on your car.
That all being said, I don't want to kill your fun, but personally I wouldn't run this platform for rally, even though you already have a car. There really are platforms that are better suited and cheaper to run, and honestly, that makes it more fun in the long run. Also, I haven't seen any Audi's past the mid-90's in my 10 years of running TSD's and stage rallies.
Your location says NJ, so if you are in New Jersey, there are some great TSD rallies in the Pine Barrens, and next door near the Finger Lakes in NY. You basically need no equipment to run those, so it's probably worth it to run a few of those to get a feel for how your Audi handles some off-roading. You will need a co driver who likes math!
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