if under $2,500 you can expense the entire cost if you make the de minimus safe harbor election. the election must be included in your returns. to find it type elections in the search box. you don't capitalize it in this case..
the rules for the election
You don't have an applicable financial statement (most people don't).
You have a consistent process for how you record expenses and assets.
You record these items as expenses on your books/records.
The cost of each item as shown on your receipt is $2,500 or less
if it cost more you capitalize the full cost and depreciate. don't know your situation as to profit or loss on the property so the depecition method to use is unknown.
only the interest portion of the loan would be deductible based on the amount included in the payments you made for the year.
