Start Up Costs for ADU - Expense/Asset Deduction?

[Ray Martinez]

Hello,

I'm filing taxes for the 1st time with an ADU rental income. When browsing through the questions around the rental property, I came across the expenses vs assets topic.

I spent the last quarter of 2020 starting the conversion(Rough plumbing, rough electrical, driveway redone, exterior re-stuccoed, etc). Start of 2021 was the finishing work (Kitchen installed, bathroom installed, etc). I furnished some appliances, added AC, as well.

Am I able to capture these items as an expense or asset? If not, how do I best capture tax incentives from a garage conversion?

Thank you,