You are in business when your business functions as a going concern, engaged in activities you organized it for.1 In general, this means that you

qualify to be in the business;

intend to make a profit;

regularly and actively work at the business; and

have made your first sales calls.2

The business must begin for you to depreciate your assets and write off your start-up expenses.

Example: L. D. Daily bought equipment and incurred expenses to start a videotaping business, but the business never started. ... Log in to view full article.