If the rental property has a renter in it on or before Dec 31 of the tax year then everything gets reported on SCH E.
If the rental property is move-in ready and available for rent on or before Dec 31 of the tax year, then everything gets reported on SCH E.
If there is no renter in the property and/or the property is not available for rent on or before Dec 31 of the tax year, then nothing concerning the purchase is reported on SCH E. It's treated as the purchase of a 2nd home. The only deductible things will be property taxes and any mortgage interest paid in the tax year. That's it. More than likely if you close on the purchase in Dec then your first payment will not be due until the next tax year. Therefore a 1098-Mortgage Interest Statement might not be issued. However, on your closing statement it will show pre-paid mortgage interest paid at the closing which can be claimed on the tax return. Where you claim it depends on if the property is in service or not, on or before Dec 31 of the closing tax year.
You will deal with other closing costs on the tax return for the tax year the property is placed in service and is at least available for rent at a minimum.
All the above is assuming you will "IN FACT" rent the property out successfully, at some time during your period of ownership, regardless of what tax year that may occur.
