Yes, Idaho is one of the community property states so you may qualify as a joint venture. See Election for Married Couples Unincorporated Businesses.
All expenses before a sale are" start up" costs.
Yes, Once a sale is made, then you start dividing up the expenses into the appropriate categories. This goes over the $5,000 start up costs. See About Schedule C (Form 1040), Profit or Loss from Business IRS.
However, you may not be able to claim the full $5,000. From Sch C instructions, Part V:
Business start-up costs.
If your business began in 2021, you can elect to deduct up to $5,000 of certain business start-up costs. The $5,000 limit is reduced (but not below zero) by the amount by which your total start-up costs exceed $50,000. Your remaining start-up costs can be amortized over a 180-month period, beginning with the month the business began.
For details, see chapters 7 and 8 of Pub. 535. For amortization that begins in 2021, you must complete and attach Form 4562.
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