Taxpayer purchased a residential rental property 3 years ago and reported the rental income & expenses on the schedule E.
In the beginning of 2021, he decided to renovate the whole house and all of the tenants moved out at the end of 2020.
For 2021 the mortgage interest deduction was $25,300 and the real estate tax deduction was $17,500.
Since there was no rental income for 2021 are the deductions mentioned above taken on the Schedule E as a current deduction or capitalized into the cost of the improvements to the property?