organization costs are section 248 items. These relate to incorporation so technically none of your expenses are 248 items but start-up costs
startup costs
Definition
Non-recurring costs associated with setting up a business, such as accountant's fees, legal fees, registration charges, as well as advertising, promotional activities, and employee training. Also called startup expenses, preliminary expenses, or pre-opening expenses.
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your liability insurance and tool costs would seem to be recurring. also see below about tools
now good news about your startup costs
You can't deduct these expenses under the general rules for business deductions because only expenses for an existing trade or business can be deducted. And, by definition, you incur your startup expenses prior to the time that your business is born.
Fortunately, there is a way around this dilemma. If your startup expenditures actually result in an up-and-running business, you can:
Deduct a portion of the costs in the first year; and
Amortize (under section 195) the remaining costs (that is, deduct them in equal installments) over a period of 180 months, beginning with the month in which your business opens
If your start-up efforts end in the creation of an active trade or business, then on your tax return for the year the business commences, the amount of expenses that you can deduct will be the lesser of:
Your actual expenses with respect to the new business; or
$5,000, reduced by the amount by which the start-up expenditures with respect to the active trade or business exceed $50,000
The remainder of your start-up expenditures is deducted ratably over the 180-month period beginning with the month in which the active trade or business begins.
What Costs Qualify?
Investigation expenses that qualify include those relating both to business conditions generally, and those relating to a specific business, such as market or product research to determine the feasibility of starting a certain type of business. The costs of checking out the various factors involved in site selection would also be an amortizable investigation expense.In addition, the costs of creating a business include advertising, wages and salaries, professional and consultant fees,
What Costs Don't Qualify?
The following costs don't qualify for the first year deduction and 180-month amortization:
Startup expenditures for interest, real estate taxes, and research and experimental costs that are otherwise allowed as deductions do not qualify for amortization. These costs may be deducted when incurred
The costs attributable to the acquisition of a specific property that is subject to depreciation or cost recovery do not qualify for amortization. Instead, the property should be depreciated under the appropriate rules (for example tools)
