Yes, and the expenses incurred should not be deducted until the year of the sale.
When you flip a home as a business, the cost of the home and all costs to renovate it should be listed under Purchases in the Cost of Good Sold area, and then listed in the ending inventory (until the year it is sold).
Then the year the flipped home is sold, it is offset against the income as Cost of Goods Sold (COGS).