You might want to look at Pub 535 for a discussion about starting a business.
Expenses generally have to be deducted in the tax year that they were incurred. However if you started a new business some start up costs can be deducted.
- Organizational costs: If you legally set up your business as a partnership or corporation before the end of your first year in business, you can deduct these costs as well. The expenses typically associated with incorporating are: legal fees, state organization fees, salaries for temporary directors and organizational meetings. Expenses associated with setting up a partnership agreement include: legal expenses as well as filing and accounting fees.
