Hi there,
For a Schedule C sole proprietorship that has shown a loss in the first two years, if the third year is close to showing a profit can some business expenses simply not be taken as deductions? So as to not trigger the 3-of-5-years rule.
Not reporting an expense, is there anything wrong with this?
How about for a depreciating business asset using a 5-year straight line method. Can you simply elect not to take a depreciation deduction for it in any given year?
Thanks,
-Daniel
