Hi Diane,
I changed my wife's personal photography business from inactive to discontinued. My audit risk went from very low to very high. TurboTax says the high audit risk is due to:
- Having a Schedule C
- Significant reduction in business income over the last year (not true-it's been inactive for 3 years)
- Business expenses are significantly higher than business income ($0 income, $0 expenses, but ~$120 depreciation for camera gear).
Is this audit risk an anomaly or am I better off just letting this business 'ride' as inactive?
Thank you,
Bill
