Filing a loss this year, am I prepared for an audit?
I’m just a normal guy who decided to start a little consulting/web hosting service on the side of my day job this year. I made some dumb decisions but also there have been lots of “startup costs” and the end result is that my total “income” this is about -$5,000.
I heard that sole proprietors filing a loss on Schedule C is a massive flag to get audited. It makes me nervous, but in reality I think I’m fine because I have absolutely every receipt from every expense I had and all income I received (and there are no froo froo expenses). Is this enough if I get audited?
This question is in the General Section. Responses must be helpful and on-topic.