Tax question: Incur rehab costs before or after Jan 1st?

[Julie Halloran]

I'm currently undergoing a renovation on a 2-family I purchased a couple of weeks ago. I anticipate the renovation to last past the new year, and will include items like painting, refinishing floors, new kitchens and baths. What type of items/work (if any) can I deduct from my taxes, and considering I won't have rental income until after January 1st, is it better to defer more of these costs into the new year?

Thanks!

Julie