When this guide is useful
An owner pays formation and launch expenses before the operating business opens.
The distinction that matters
Organize pre-opening costs separately from later operating expenses and asset purchases. Payment by the owner does not settle capitalization or deductibility.
A worked situation to investigate
An entrepreneur pays legal fees, training expenses and equipment deposits before the first customer contract begins.
The example is illustrative. Begin with the underlying event and its source documents, then separate missing facts from disagreements about their treatment. Work through the checks below in the order that matches your file, rather than treating a completed checklist as a tax conclusion.
Build a traceable handoff
Identify the affected person, entity or property and the relevant period. Keep original evidence, corrections and the reviewer's written conclusion connected. If the facts change after review, preserve the earlier version and ask whether the change affects implementation.