Jane and Joyce own a retail bicycle shop and decide to investigate the potential of adding another location in a nearby city. They incur $800 in travel costs, $1,100 in legal fees to review building codes, and $1,800 to obtain local market research. What are the tax considerations and which expenses are deductible under the following scenarios:

1. If Jane and Joyce decide not to open the second shop?
2. Would your answer differ if Jane and Joyce did not have an existing business?