No income but plenty of expenses

[ILLMAS]

I have a new business TP that is incurring expenses to launch a business for the last two years, what would be the proper way to account for those expenses? 

[Jack from Ohio]

Keep track of all startup expenses, then when the business actually starts making income, amortize total startup costs for 15 years.  No deductions or tax filing until the business actually starts producing income.

[Terry D EA]

Jack hit the nail on the head with this one.

[Jack from Ohio]

[joanmcq]

Or at least is open for business. 

[Gail in Virginia]

And they can elect to deduct the first $5,000 in startup costs rather than capitalizing them if total start up costs are less than $50,000.  If more than $50,000 then the amount that can be deducted is reduced.