So let's say that one spouse is working full time for simplicity let's say this spouse is making 100k/y and paying 30k/y in income tax. Then let's say the other spouse is running a sole proprietorship business that is operating as a retailer.
Let's say spouse two starts to buy supply and sell it at a loss up until 30k worth of supply in a year. Would the couple be able to fill as a married couple and deduct 30k from the income tax for the supply at the end of the year? Basically pocketing whatever money they did get from the sale even if it was sold at a loss?
If not why wouldn't this work and could this scheme be made to work?