ThomasM125
Expert Alumni

Self employed

You shouldn't be too concerned about the consequence of an audit if the expenses you deducted were legitimate and you have documentation to support them. In the case of the business auto, you are required to keep a mileage log or similar written record to substantiate the business purpose of the trips you took. It is required to be done at the time you are using the vehicle as well, you aren't allowed to throw it together after the fact.

 

For business travel, you need to have copies of airplane tickets, motel receipts, receipts for meals and other expenses while you were away. Also, you need to be be able to prove that the trip was business related and the proof needs to be adequately documented.

 

On a macroeconomic scale, your loss is actually somewhat modest in relation to what many start-ups experience, so your chances of an audit are likely in the modest range at best. If you assemble good documentation and don't go overboard with your deductions, you shouldn't be overly concerned.

 

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"