I purchased and renovated a duplex in 2016, and rented it in Feb 2017. Do I add the 2016 and Jan 2017 utilities to the capital project or are these startup expenses?

Repairs and improvements made to a rental property prior to being available to rent must be capitalized, subject to depreciation. This would include utility expenses related to the repairs/improvements.

Enter these costs under Rental Assets/Depreciation as "improvements."

See this discussion for more (ext link): How to Deduct Startup Expenses for Rental Property