Yes, you may be able to write off some of the cost of the windows if you qualify for the Safe Harbor Election for Small Taxpayers. TurboTax will ask you about this election under the Assets/Depreciation section of your Rental Property. If you choose this election, you can expense up to $10,000 in costs that would otherwise be depreciated.
The cost of the windows in full (or the balance after applying the Safe Harbor Election) is reported as a rental asset in the year they are placed into service (installation completed). It doesn't matter how you paid for the windows.
The loan payments are not rental expenses in any year. Next year, you can report the interest portion of any payments that include interest on the loan balance. Since you paid no interest on the loan in 2024, you would not report any interest expense for the loan this year.
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