You would add it to the basis any improvements to the basis. You can't take expenses until the property is placed in service. The interest is entered as below.
Form
1099-INT reports interest from banks, brokerages, and other financial
institutions. Here's how to enter a 1099-INT:
- Open (continue) your return
if it's not already open.
- Inside TurboTax, search for 1099-INT or 1099INT (lower-case also works) and
then select the "Jump to" link in the search results.
- Answer Yes to Did you
receive any interest income?
- On the following screen,
select how you want to enter your 1099-INT (import or type it in yourself)
and follow the onscreen instructions.
Placed in Service
You place
property in service in a rental activity when it is ready and available for a
specific use in that activity. Even if you aren’t using the property, it is in
service when it is ready and available for its specific use.
Example.
On April 6, you purchased a house to use as
residential rental property. You made extensive repairs to the house and had it
ready for rent on July 5. You began to advertise the house for rent in July and
actually rented it beginning September 1. The house is considered placed in
service in July when it was ready and available for rent. You can begin to
depreciate the house in July.
