Originally Posted by TomCopeland:
You can start claiming expenses for your business in the year your business begins. Your business begins when you are ready to care for children and are telling others that you are ready. It doesn't matter if you are licensed or not. So, since your friend was not ready to care for children til 2011 she can't claim any business expenses in 2010. She can, however, claim these 2010 expenses on her 2011 tax return.
Thank you Tom!