You are in business when your business functions as a going concern, engaged in activities you organized it for. 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.
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.