Yes, it is still considered a rental property. You should treat it the same as you did when you had a tenant, you just won't report any income. And yes, based on what you have described, you will have both repair expenses and capital improvements. The way you treat the property for the period while it was vacant and undergoing repairs is affected by your intended use of the property once repairs are complete. If you intend to sell the property when complete, it quit being a rental and you would treat it as an investment property. You would stop depreciating, and most expenses would not be deductible, instead, they would be added to you basis.
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