Yes, the upgrades and furnace/AC are depreciable improvements, not repairs, which are generally depreciated over 27.5 years.
]If your income is over $150,000, passive losses are not allowed, so the losses will be carried forward until (a) there is passive income or (2) the property is sold.
Just be sure you are entering ZERO personal days. You only enter the number of personal days AFTER it was converted to a rental.
