This is not a problem if you are still making a profit and not an obvious tax shelter. After all, how would the IRS know which business expenses are intended to

This is not a problem if you are still making a profit and not an obvious tax shelter. After all, how would the IRS know which business expenses are intended to make a profit vs investments that didn’t pan out? There is obviously room for abuse there but it is for company ownership to deal with not the government.