not at all stupid. you're following the tax laws in that they allow you to deduct business losses. there is no requirement to take losses but if you do you have to take them in the correct year. this rule applies to deductible expenses be it for business, medical, taxes, charity, capital losses, etc. the other important rule is that it has to be an activity engaged in for profit and not a hobby. it's quite common for new businesses to have losses in the first few years until a client base can be built up.
