Intermediate

Schedule C review: expense reasonableness and substantiation

Reviews Schedule C data for reasonableness, flags high-risk deductions, and suggests substantiation needs. Useful for preparers and reviewers managing audit risk.

Review Schedule C information for {client_name} for {tax_year}.

Inputs:
- Business description and income: {business_description_income}
- Expense detail: {expense_detail}
- Prior year Schedule C (optional): {prior_year_schedule_c}
- Mileage/home office info (if applicable): {mileage_home_office}
- Large/one-time purchases: {large_purchases}

Output:
1) Reasonableness analysis (expense % of revenue, year-over-year changes).
2) High-risk deduction flags (meals, travel, auto, home office) and substantiation checklist.
3) Classification suggestions (repairs vs improvements, supplies vs assets).
4) Client questions needed before finalizing.

Avoid giving legal advice; focus on documentation and risk.

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