Ok... I agree with Carl ... BIG mistake to do what you are thinking about doing and I highly recommend you talk to a local professional tax pro to get educated on this "tax plan" that no one does because it makes no financial sense to do so.
One flaw you are not understanding is the Sch E deduction negating the Sch C income ... it does for federal taxes but not for the SE taxes so it will cost you 15% in SE taxes to follow this idea.
