Start-Up Expenditures Law and Legal Definition

The term start-up expenditure means any amount paid or incurred in connection with investigation about the creation or acquisition of an active trade or business, or for the creation of an active trade or business [26 USCS § 195 (c)(1)]. Any such amount that is paid or incurred in connection with the expansion of an existing trade or business would be allowable as deduction for the taxable year in which such payment was made or incurred.