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I think you're confusing personal taxes and corporate taxes, at least if you're talking about the US tax code. They're very different animals. For instance, your friend buying the new Mercedes is almost certainly not doing so with his personal funds; he controls a business that purchases it for him. It is a deduction for the business but not for him personally.
I'm also willing to bet that you've never been a small business owner - I could be wrong, but it seems like a safe bet - so I don't know if you understand the ramifications of a small business bumping compensation and perks for the owners. That's going to create some significant tax liabilities for them personally, most specifically with compensation. For instance, a salary going from $75k to $100k is going to result in a change in tax brackets and an increase in personal income tax by roughly $10k. But maybe you're talking about something completely different.
If you have $50k in tax personal liabilities for last year - 2010 - you need to get a new investment advisor. You're making over $400k, so you can afford it. There are many ways - municipal bonds for instance - that allow you to grow money with little or no penalty.
Now, your current advisor's recommendation is fraudulent. I can easily check with a tax attorney if you'd like (I'm related to more than one), but I'm certain that there's no provision that allows an individual to purchase a corporation's losses to claim as their own. Perhaps you haven't described the theory well enough, but as it stands, what you've described is blatantly - and obviously to me - illegal.
If we're talking about the US, I think you're getting some pretty bad information from someone.
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