I started a new business that did not generate income until 2017, but all of my expenses for starting the business were incurred in 2016. How do I enter this information

[Rainman12]

Generally, you don't have any allowable deductions until you have 'economic activity' - ie, are open for business. So what specific types of expenses did you have in 2016? How/where did they appear on your return?

[causha2015]

Furnishing and setting up an office, legal fees, etc.  My business is service based.

[Opus 17 · Accepted solution]

 If your start up expenses are less than $5000, you can deduct them in the first year that the business has income. If your start up expenses are more than  $50,000, they are amortized over 15 years. If your expenses are between $5000 and $50,000, then part can be expensed and part must be amortized, and there is a formula to follow.