Points/ Interest Paid On Hard Money Loans

I paid a significant amount of points and interest to hard money lenders to buy several rental properties last year. I have enough deductible losses to take, so my question is can I capitalize those costs as part of my depreciable cost basis, or do I have to expense it. Also, does it make a difference whether the property was immediately income producing or whether it was rehabbed and didn't produce income until 2008. Same question also for property taxes paid during this period..

Property taxes and interest are expenses. Loan costs like points are part of your basis.

Chris