Hello,
This year, I will be recording a small loss on my personal income tax return.
Like everyone else, I want to avoid a tax audit. I have nothing to hide, but I have often heard that it can be quite unpleasant and time-consuming.
My questions:
1. Can reporting a loss on my personal income tax return increase the likelihood of a tax audit?
Is this also the case if the combined return with my wife does show a profit (my wife’s self-employed activity will be positive)?
If the answer to both questions is yes and the chance of an audit is therefore higher, I will simply not record some expenses to avoid a loss on paper. I will then pay slightly more taxes (I estimate around 200 euros), but I think that is worth avoiding a tax audit.
Thank you for your help!