When your business is first active (you are engaged in business activities with a profit motive on an ongoing basis) you file a schedule C, even if you did not make a profit. The schedule C will include your start-up expenses. Startup expenses can be expensed in the first year, or must be spread out over 15 years, depending on the amount. Equipment is placed in service as business assets and depreciated in the normal way. If you have a loss that year, it may offset other taxable income, or it may carry forward to offset your business income in future years.
If you started ongoing business activities last year, or had any gross income (even if your gross income was less than your expenses) you should go back and file and amended return to properly report the business and startup expenses. If you only had startup expenses in 2021 and were not actively in business until 2022, then you can report your startup expenses in 2022.
You will need Turbotax self-employed if filing online. Deluxe includes the forms you need if you buy it on CD or download to install on your own computer, but Home & Business will have more help and a better workflow if this is your first time filing a schedule C.
