Any expenses that you do not see categories for on page 1 of Form 1065, can be included in line 21 under Other Deductions. You could include supplies and small tools and equipment there.
Start-up cost usually include the costs of training staff, legal fees and establishing vendors and suppliers, advertising in anticipation of your opening, and organizational expenses. As Mike9241 mentioned, you can claim the expense on the year you start your business, or you can choose to amortize them and spread the expense over more years. For more information about start-up expenses, refer to the following article:
Regarding the sale of products, you can report the cost of your products as supplies as long as your business had annual sales for the last three tax years average out to $26 million or less per year, and you use the cash method of accounting. For more information on inventory see TurboTax help article below.
As always, feel free to reach back if you have additional questions.
@theleeb
