Construction cost for Garage conversion to ADU

Hello,

We have converted our garage to ADU and am currently using it for my parents (no rent)

 

Is it correct that the construction code paid (labor, material, permits, etc.) is not deductible as it would be considered as personal use?

 

Is it correct that in future, if this were to be rented out, then the construction cost could be depreciated?

 

Thank you for your help