capitalizing mortgage interest on rental

[Kram BergGold]

My client bought a house on April 1 to be used a a rental property. For the first 4 months of ownership she was rehabbing it. On Aug 1 it was placed into service. Do I capitalize the interest, taxes, insurance, and utilities incurred during the first 4 months over 15 years of 27.5? Do I need to attach an election statement or because this capitalization is mandatory no statement is required?

[Bill Tubbs]

Increased basis

Rental property was not placed into service until Aug, so all the rehab, tax, etc. prior to placed in service is added to the basis of the property. In effect, it gets depreciated out over 27.5 years.

Bill