Qualifying costs. A start-up cost is amortizable if it meets both of the following tests.
•It is a cost you could deduct if you paid or incurred it to operate an existing active trade or business (in the same field as the one you entered into).
•It is a cost you pay or incur before the day your active trade or business begins.
Start-up costs include amounts paid for the following.
•An analysis or survey of potential markets, products, labor supply, transportation facilities, etc.
•Advertisements for the opening of the business.
•Salaries and wages for employees who are being trained and their instructors.
•Travel and other necessary costs for securing prospective distributors, suppliers, or customers.
•Salaries and fees for executives and consultants, or for similar professional services.
Nonqualifying costs. Start-up costs do not include deductible interest, taxes, or research and experimental costs. See Research and Experimental Costs , later.
