I have a small in-home bakery, sole-proprietor. 2023 will be my 6th year showing a loss. I worked 100% of the time but only had $5150 in income this year. With all my deductions, I show a loss of $-17,332. Cost of supplies and ingredients ridiculously increased, plus we relocated. I only claimed 1/3 of my moving truck expenses.
Since it is my 6th year with a loss will this raise red flags triggering an audit? 2023 was probably my worst loss. My audit risk was medium but I am wandering if I should amend my taxes and not take so many deductions.
Do I have anything to be concerned about as far as an audit?
