During the startup phase of your business, practically NOTHING is deductible.  Generally, you may only take a write-off after you have started your business, your new division or your new project.  So if you created a business in 2015 but made your first sale in 2016, you probably can't write off your 2015 business expenses, only those from 2016. This is powerful information. Let's sit down and talk about these types expenses and what you can and cannot write off and when.  It's a BIG mistake to have expenses for one year with no sales until the next year, making those big startup costs a huge loss because you wouldn't be able to write them off.