Rental Property - Tenant Eviction

If your intent is to rent the property out once the renovations are done, you can still deduct ordinary and necessary expenses for the home.  You can still claim a loss, but you cannot claim a loss of rental income. 

Your renovations to the property will capitalized (added to the cost basis of the house) so these are generally not expenses you can just deduct instead they would be depreciated.

Up until April, your property was rented.  Since April, it is inactive since it is not available, but still a rental, unless you are planning on doing something else with it.  You do not need to mark it as personal use or "take it out of commission"

We started tenant eviction in October 2021

Any legal expenses incurred/paid in 2021 are deductible as a rental expense on your 2021 tax return.

and they go out in April 2022.

Any legal expenses incurred/paid in 2022 are deductible on SCH E on your 2022 tax return.

Can I still claim expenses / loss on that rental property?

You can most certainly claim rental expenses in the tax year you paid that expense. But you don't have any losses to claim as far as the eviction goes. If the tenant was not paying rent, that just means you have less rental income to report. You can't claim as a loss, that which you were never paid in the first place and therefore never taxed on.

We've had to do serious clean up and are still in process of renovation. What becomes the status of the property?

Based on the information provided, the property remains classified as residential rental real estate, depreciation continues uninterrupted, and everyday rental expenses are still deductible. So there's no "change in status" of anything really.

Vacant periods between renters is perfectly normal and expected, as it takes time after a renter moves out, to get the property turned around for the next tenant. Also, those vacant periods are "NOT" personal use days either. So unless you actually live in the property for "PERSONAL" use, it's still considered 100% business use for the year with zero personal use days.

I do note you used the word "renovations" in your post. There is a difference between renovations and maintenance/repair costs on real estate, when it comes to rental property. Renovations are sometimes referred to a property improvements. I've provided the clarity below, in case you find it helpful.

RENTAL PROPERTY ASSETS, MAINTENANCE/CLEANING/REPAIRS DEFINED

Property Improvement.

Property improvements are expenses you incur that Improve, restore, or otherwise “better” the property. Basically, they retain or add value to the property.

Betterments:
Expenses that may result in a betterment to your property include expenses for fixing a pre-existing defect or condition, enlarging or expanding your property, or increasing the capacity, strength, or quality of your property. An example of a pre-existing condition or defect in this context would be something such as foundation repair (slab jacking) or some other, hidden and costly, anomaly.
Restoration:
Expenses that may be for restoration include expenses for replacing a substantial structural part of your property, repairing damage to your property after you properly adjusted the basis of your property as a result of a casualty loss, or rebuilding your property to a like-new condition.
Adaptation:
Expenses that may be for adaptation include expenses for altering your property to a use that isn’t consistent with the intended ordinary use of your property when you began renting the property. Adding a wheelchair ramp would be an example.

Expenses for these types of costs are entered in the Assets/Depreciation section and depreciated over time. Property improvements can be done at any time after your initial purchase of the property. It does not matter if it was your residence or a rental at the time of the improvement. It still adds value to the property.

To be classified as a property improvement, two criteria need to be met:

1) The improvement must become "a material part of" the property. For example, remodeling the bathroom, new cabinets or appliances in the kitchen. New carpet. Replacing that old Central Air unit.

2) The improvement must retain or add "real" value to the property. In other words, when the property is appraised by a qualified, certified, licensed property appraiser, he will appraise it at a higher value, than he would have without the improvements.

There are rules that allow you to just flat-out expense and deduct some property improvements instead of capitalizing and depreciating them, if the total cost of the improvement was less than $2,500. It’s referred to as “safe harbor di-minimis” But depending on the specific situation, this may or may not be beneficial. Just be aware that not every property improvement that cost less than $2,500 qualifies for this. If this interest you, the rules can get complex. So a good place to start reading is on the IRS website at https://www.irs.gov/businesses/small-businesses-self-employed/tangible-property-final-regulations. The stuff on di-minimis starts about one page down.

Cleaning & Maintenance

Those expenses incurred to maintain the rental property and its assets in the usable condition the property and/or asset was designed and intended for. Routine cleaning and maintenance expenses are only deductible if they are incurred while the property is classified as a rental. Cleaning and maintenance expenses incurred in the process of preparing the property for rent for the very first time are not deductible.

Repair

Those expenses incurred to return the property or its assets to the same usable condition they were in, prior to the event that caused the property or asset to be unusable. Repair expenses incurred are only deductible if incurred while the property is classified as a rental. Repair costs incurred in the process of preparing the property for rent for the very first time are not deductible.

Additional clarifications: Painting a room does not qualify as a property improvement. While the paint does become “a material part of” the property, from the perspective of a property appraiser, it doesn’t add “real value” to the property.

However, when you do something like convert the garage into a 3^rd bedroom for example, making a 2-bedroom house into a 3-bedroom house adds “real value”. Of course, when you convert the garage to a bedroom, you’re going to paint it. But you will include the cost of painting as a part of the property improvement – not an expense separate from it.