can be considered start-up expenses.
Unfortunately, that's not true for residential rental real estate reported on SCH E of a 1040 personal tax return. It "is" true for a SCH C business, but not SCH E rental or royalty income.
If the contractors are using the utilities in the performance of completing the renovations, then the cost of those utilities (or an equitable portion thereof) can be included in the cost of the property improvement.
But until the property is available for rent, the property insurance is flat out not deductible at all on the federal return, and the mortgage interest and property taxes are SCH A itemized deductions.
