Business start-up costs are the expenses you incur before you actually begin business operations. Your business start-up costs will depend on the type of business you are starting. They may include costs for advertising, travel, surveys, and training. These costs are capital expenses.
You usually recover costs for a particular asset (such as machinery or office equipment) through depreciation. Other qualifying start-up costs can be recovered through amortization. This means you deduct them in equal amounts over a period of 60 months or more. If you do not choose to amortize these start-up costs, you generally cannot recover them until you sell or otherwise go out of business.
For more information on business start-up costs, see chapter 9 in Publication 535.
Information courtesy of the Internal Revenue Service.