the hobby loss rules are not just for years 1 thru 5, but 2 thru 6, then 3 thru 7 and so on.
the IRS has to assert you have a hobby which you can refute by showing that the activity will eventually be profitable.
not reporting all expenses to achieve a profit on which you would have to pay income and self-employment taxes doesn't seem wise. under the tax laws by overstating your profits you could end up with a tax benefit you are not entitled to and that can get you into trouble. why continue what is in fact a money-losing activity?
you can elect the ADS system which usually stretches out the life and depreciation period but you can't skip a year. see IRS PUB 946. or maybe take section 179 which is not allowed until there is profit and only up to the amount of profit. unused amounts are carried forward.
https://www.irs.gov/pub/irs-pdf/p946.pdf
