I have an internet business. It is a sole proprietorship and is taxed
as such. I anticipate netting $400,000 USD this year. Next year,
however, I might not make any money. So, I would like to 'stretch' out
what I earned this year so that I would not be taxed in the highest
tax brackett and all at once.

Could I buy an office, for example, and therefore count the cost of
the office as a loss against my net earnings. For instance, if I
bought a $200,000 office, would that mean I would then be taxed only
for the remaining $200k profit?

What other ways could I spread these earnings out? I just don't want
to be taxed all at once, because next year will be nothing like this
year for this sole proprietorship in terms of profit.

Assuming you are cash, not accrual, delay billing.

INvestments are not expensed.  Buying a building  - or anything the
IRS says must be "depreciated" -  just transfers the asset of a bank
balance to the asset of fixed assets in your balance sheet.

It could be interesting if your 'self' paid a service company.

I think that you need to talk to a competent taxation accountant and
think about incorporating.

frde- Could you elaborate on what you meant by 'if your self paid a
service company'? I do plan on meeting with a professional soon, but I
want a few ideas to approach him with.

Thanks!

Imagine that you paid another company for 'services', if incorporated
it would be liable to corporation tax, but under most jurisdictions
that is set off (rebated) against future losses or dividends.

That is certainly the case in the UK, and there is nothing to prevent
you setting up a UK Ltd company.

It is a controversial way for individuals to spread their income over
years, rather than taking a hit in one year. The controversial
Socialist Mayor of London, Ken Livingstone, has just such an
arrangement.

Another method is to have a number of companies, all with different
accounting years, and they simply pass the money between them.

thanks- any other ideas specific to the US tax code?