Yes, you may report as Startup Costs any expenditure that prepares your business to generate income, before you are actually open for business. This includes expenses that would normally be deductible if the business was active, like office equipment.
Capital assets that would normally be subject to depreciation may not be included as startup costs. However, the current Safe Harbor Election allows you to expense capital assets costing $2,500 or less.
You may expense up to $5,000 in startup costs in the year that your business starts.
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