First of all, I would like to stress I am looking only for legal (in the US) ways to minimize taxes.
No cheating.
Just like in that movie, The Shawshank Redemption, Andy's advice saved a few bucks for Byron.
are you thinking to deduct the loan interest from $2k profit, so that you paying tax only on $500
I think you can't do that if you are doing it personally unless you are reporting tax as a business
Interest paid on personal loans is not tax-deductible. If you borrow to buy a car for personal use or to cover other personal expenses, the interest you pay on that loan does not reduce your tax liability.
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Exceptions to the Rule
If you use a personal loan or credit card to finance business expenses in addition to personal expenditures, you may be able to claim the interest paid on those expenses on your taxes. You must be the person legally liable for the loan, and you must be able to itemize what portion of the interest paid is attributable to legitimate business expenses.
That is pretty close to what I'm thinking about.
It seems there are no elegant and simple solutions.
Thanks to everyone for contributing to this topic.