For starters a loan is not capitalized. Not ever. But the loan fees can be amortized, which is entirely different from capitalization.
A capitalized asset is depreciated over time. Generally for rental property, it's depreciated over 27.5 years. Then when you sell or otherwise dispose of that property, all prior depreciation is recaptured and taxed in the year you sell or dispose of the property.
An amortized asset is deducted over time - not depreciated. Amortized costs are a bonafide deductions that are not recaptured. Generally, an intangible asset is amortized. An intangible asset is generally something you can not physically touch - such as loan origination fees. In most situations (rental property not being one of them) you can deduct a maximum of $5000 in the first year, and the remaining is amortized over 15 years.
If the program has not already entered something in the assets/depreciation section for your amortized intangible asset(s), you can enter it manually.
In the Assets/Depreciation section on the 'Your Property Assets" screen click the Add An Asset button.
Select Intangibles, Other Property and continue.
Select Amortizable Intangibles and continue.
Describe the asset. Something like "Loan Fees" will suffice.
Enter the amount.
Enter the closing date, which is the date you closed on the purchase. Then continue.
Seelct Purchased New, and indicate you used it 100% for business, then continue.
In the code section dropdown, select 163: Loan Fees and continue.
Useful life is 15 years, then continue.
If you want, on the summary screen click the details link to see the breakdown.
That does it.
Understand that the amount you claim here are amounts associated with the acquisition of the loan only, not the acquisition of the property.
Expenses incurred for loan acquisition are amortized as above.
Expenses incurred for the property acquisition are sales expenses.
