where do I report "research and development" on small business?

[SGlover16]

My husband has started an online store to sell replicas of autographed baseballs, cards. Before he started to sell  those items he bought and studied the actual signed balls in person or searched on internet, purchased a lot of inks, pens to developed techniques to age baseballs to place autographed and such aside from lots of lots of lots of his time, which of course he can't quantify.  Where and how to report those expenses?

[ColeenD3 · Accepted solution]

He can take start-up expenses. There is no deduction for the time spent. A business is based on income and expenses.

Start-up costs are those expenses incurred in planning and setting up the business, costs you incur before you open the door.

A portion of startup and organizational costs can be expensed (written off in your first year). The remainder can be amortized (written off over a period of 15 or more years). 

Here is how it works:

Expenses paid or incurred after October 22, 2004: 

 - You can deduct up to $5,000 in startup and $5,000 organizational costs as current expenses if the costs are under $50,000, respectively.

 - You can choose to amortize startup and organizational costs greater than $5,000, respectively, (but less than $50,000, respectively) over a period of 15 years.

 - If your startup or your organizational costs are more than $50,000, respectively, the excess amount reduces the amount you can deduct.

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Note: A cash-basis business cannot deduct or write off (amortize) these costs until they are actually paid.