My client is a small business LLC partnership located in California and is building a drive thru restaurant to lease out to a national tenant. He spent several thousands in soft cost last year 2022 ; architect fees, legal fees, permit fees, and other soft cost.

Construction began this year in March 2023.

Can we expense the soft cost on 2022 returns then capitalize direct building cost on 2023 return.

How does the TCJA impact this scenario for small businesses ?