You shouldn't enter or deduct expenses for a business that isn't up and running in the current year. Contractor expenses for improvements should be tracked and then entered as an asset when the business opens. Other expenses are considered start-up expenses and should also be tracked and entered as such in the year the business is up and running.
You can expense $5,000 of start up costs in the year the business opens, provided the total is less than $50,000. The rest you have to amortize over fifteen years.
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