In 2017, I received a cash inheritance from my deceased father's estate. I used some of this to help fund my prof. services business (coaching). I have reported the business expenses but recognize I don't have to report the inheritance peronally. The audit meter in TurboTax says the likelihood of an audit is high (red) because my business expenses are significantly higher than my business income.
Do I/should I report the inheritance money I used to help fund the business and business income? Will this mean the inheritance money is subject to taxes when used this way?
