Your business is assumed to have to be a 'going concern' in order to be able to take deductions. The IRS hasn't ever really defined what an active business is because it's so different from business to business and they take it on a case by case basis. But they are clear on what start up costs are.
Those are the costs before your business is active and they have to be amortized over time. Here's the info on that. If you want to say that your business is active it is up to the individual business owner to prove that they are. But if the IRS asks you to demonstrate that you were attempting to operate the business for the business purpose that you've stated that you are running. If you sell widgets and you can't show that you're trying to sell widgets then the expenses are start up expenses.
@gomezjrs
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
