How to deduct business expense for first flip

[Qiong Y.]

Hi, I am new to real estate investing.

I flipped a house in 2016 but I haven't been able to sell it up to now. So I don't have any income from real estate investing. My spending related to this project include (1) directly spend on the projects(labor, material, etc); (2) business expense such as purchase of a vehicle, gas, meals.

I also have regular W-2 job and an non-real estate consulting business.

When I file the tax for 2016,  how the two types spending will be dealt with?

I guess I have to leave (1) alone and to deduct any gain from my flipped house for tax year 2017 (if get sold in 2017)?

My major question is can (2) be used to deduct my income in 2016. If not, how can they be deducted? 

Thank you for your insights!