That is a tough one because depending on the 'expense' they will not allow you to incur it within a certain time frame of starting your business and the 'computer' is figuring that a YEAR is too long to have incurred an expense when not having made income when in fact it was only two months.

IMO two ways you can handle this - I would either just check that I did have income for 2011 so that it allowed me to access that part of the program and than write off these expenses against any non self employed income and when it asks your income put in $0 for your income or if it wont let you - pay yourself $1 for the time you spent advertizing your business or whatever Or the other route is that because it is only two months into 2011 and still reasonable 'start up expenses' from that year I would just keep your 2011 expense receipts and write them off in 2012's income and if you ever get audited just explain that you did not official have income in 2011 so you rolled these receipts over into 2012 against that income. My first year I started in September so only had 4 months of 'income' compared to A LOT of start up expenses from adding a fire exit to the playroom and the toys/equipment that tax year so my accountant wrote off 'some' of my start up expenses against 2007 and than we wrote off more for 2008, 2009, 2010 and this year will be my final year...so even though some of those expenses were smaller than required to 'amortize' them and I COULD have wrote them all off in the first year we 'bundled' them into one expense and amortized them to give me more deductions over a longer period - because otherwise my first year I would have reduced my income to a 'negative' and lost the benefits of those write offs against actual taxes cause once you reach zero does not matter how much in the 'whole' you were you do not get any more refund or credit