All expenses incurred after you were officially "open for business" are claimed as business expenses. That would be sometime in May 2019 for you.
Expenses directly related to the business that were incurred before you were officially open for business, are business start-up expenses. Those start-up expenses are amortized (not capitalized) and deducted (not depreciated) over the first 15 years of business.
In your first year of business you can deduct a maximum of $5000 right off the bat, with any remaining start-up costs amortized and deducted over the next 15 years. But it only makes sense to claim/deduct the full $5000 in that first year, if you actually have the taxable business income to deduct it from.
There are two types of expenses that are usually incurred prior to the opening date of your business that can not be amortized.
- Tangible Assets - THings like real estate (a store front) or equipment. Anything your business purchased prior to the state date that is used "on a recurring basis" to produce income is not a startup expense. It's a business asset. It gets entered in the Business assets section. What you paid for it will be capitalized and depreciated over time. The depreciation time depends on the specific asset. For example, business real estate is depreciated over 39 years, while equipment (such as a printing press) is depreciated over 7 years. Motorized equipment (such as a tractor) is depreciated over 5 years.
- Intangible assets - These are expenses to pay for something directly related to the business that you can't physically touch or hold in your hand. For example, business registration and licensing fees. These costs are also amortized and deducted over the first 15 years of business if you paid this cost before the official "Open for business" date of your business.
