Selling a home

Forum|Forum|3 years ago
November 16, 2022
1 reply
20 views

I have smaa clothing shop that I operate in Ecuador. I have no employees but my girlfriend controls the operation of the shop. All operating costs and expenses are paid by me. Since the major earthquake here in Ecuador in April 2016 (7.8 quake) and then the pandemic, the economy has been in shambles. I believe once the economy recovers the business will be profitable. I want to continue the operation. I have filed my taxes with Turbo Tax every since 2014. I receive the message each year that my risk for an audit me be a concern. Any advice for continuing to operate knowing that the business will likely result in losses for the foreseeable future?

DavidT0202

Level 5

Hi @vin6ce

I am sorry to hear about the earthquake and economy affecting your business.

If you plan on continuing the business there is no problem with the business taking a loss. As long as you have a record of expenses and income and are reporting them properly an Audit is nothing to worry about. If you are worried about an Audit happening, just make sure to keep your records in order.

I wish you and your wife the best of luck and if you have further questions please reach out.

Thank you for choosing TurboTax!

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