Does it increase chances of being audited if my expenses for a startup handyman business were particularly large relative to my income from that business?

[JulieR · Accepted solution]

Not necessarily.  It is not unusual for new businesses to incur expenses with little income.  The key is if the expenses are ordinary and necessary for the operation of your type of business.  Just be sure you keep copies of the supporting documentation/receipts for the expenses you are reporting.