Tax question: Owner financed payments

[Ashly B.]

I am hoping to do my own taxes this year but got a little stuck as I was finalizing my books. I purchased a SFH in Oct. 2021 with owner financing that is still under renovation. I understand that any renovation expenses incurred prior to the rental being put "in-service" must be capitalized and depreciated over a period of time. Two part question: 1) how do you account for the payments being made to the owner? Do I figure out the interest and just include that piece in "other interest"? Are the principal payments accounted for at all for tax purposes? If so, what category? 2) Can I still deduct other holding costs such as utility bills and if so are those counted as renovation expenses as well?

Appreciate any guidance or resources you can point me to!