Early tax question -- Do I deduct my expenses if...

[Joseph B.]

So, I'm in the middle of flipping a house.  Its taking longer to get it on market than I'd like.  It probably won't close until after the new year.  So, if all my expenses happen this year and I sell the house next year, Do I deduct them as business expenses this year and pay huge tax on the full sale price of the house next year or do I just sit on them and deduct them from the profit on the house next year.  I know I'm probably 6 months out of cycle on asking this and at the same time showing my ignorance of the income tax code relative to real estate, but I thought I'd ask as I'm trying to make decisions that may be impacted by the answer.   

Thanks!

[Fred Heller]

Not a CPA, but as I understand it, you deduct the basis from the sales price to determine the taxable income. The basis is the cost of acquiring the property, plus the costs of any improvements you made to the property before selling it.