Deducting repairs done while living in a property?

[Dina Harleth]

I'm currently living in a house that I want to convert to a rental.  I've been told by a couple accountants that I can have repairs done while I'm living here and still deduct them - that I can justify that these were done in order to "prepare the house for renting."  Is this true or should I have moved completely out before starting repairs?  Also, is replacing carpet that’s extremely stained and ripped up in some areas  considered a repair or still an improvement?  (Not sure whether to replace yet with carpet, or tile, or laminate, if it makes a difference.) 

Thank you!