see a pro to make sure the first year's return is filed properly. what someone told you was by someone that does not know the tax laws. if the first year's return is messed up that will create problems for future returns. it is unlikely you extended the partnership return which is now 8 months late - about a $1600 penalty/per partner. after the business has started there is no limit on the amount of current operating expenses that can be deducted even if they create a loss. however, the method of accounting (cash vs accrual) affects when the deduction can be taken. cash basis - only actual expenses paid during the tax year but if you put business expenses on a business credit card then the year they're put on the card is the year they're deductible.
accrual basis expenses are normally deductible in the year incurred but there can be other rules affecting deductibility.
what that person was alluding to, incorrectly, is start-up expenses - expenses incurred before the business actually starts. there are no hard rules to when a business starts it could e when the doors open, clients are actively sought, or your website goes live. (these are not all-inclusive)
the rules deducting start-up expenses if so elected
1) less than $5000.01 the actual amount
2) $5000.01 to $50,000.00 - $5000 deductible year business starts the excess amortized over 180 months
3) over $50000.00 - reduce the $5000.00 by the excess over $50,000.00 but not below zero. the rest gets amortized over 180 months
you need a tax pro that clearly knows the difference between start-up expenses and ongoing operating expenses.
