Can you deduct startup costs for a business that had no sales until the next year?

We started a business in 2007 but didn't start selling our product until 2008. Are the 2007 startup costs deductible on our 2007 taxes?
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Generally, your startup costs are deductible, even if you don't make sales or turn a profit immediately. However, the time frame for deducting expenses (and the amount you can deduct) can depend on the form of legal entity you have chosen. This really is a tax question, and you should be sure to speak to an accountant who understands small business tax issues.