We built an in home salon for my wife to work out of. Can we deduct all the material cost and labor that we paid to have it built?

The construction would not be a deduction.  You will depreciate based on the percentage of the home used for the business. 

If you added square footage to your home, you will be depreciating the business part of the new whole home square footage.  

If you remodeled existing square footage, you will be depreciating the business part of the improvement cost. 

Both of these options are located in the "Self-employment" topic under the "Wages & Income" tab. 

You will "Add expenses" to your business.

Scroll down and select the "home office" item.  

Use the "actual cost" option.  

Continue through the interview entering all requested information that is applicable. 

Eventually you will get to the "Home Office Asset" page. 

There is where you select which of the above options applies to your situation.  "Whole home" or "Improvement" depreciation. 

The follow on questions are determined by the choice you make.

NOTE:  If you select the "Improvement" path, you will be asked if the improvement was for the whole home or not. 

For example, you rewired the home so the new office would only get a percentage of that cost allocated.  Or all the construction was only for the office.  

TurboTax will make the calculations for you based on the entries.