No, these expenses for now are regular maintenance and will not be deductible during the period you hold or rebuild. The demolition costs could be added to the cost basis of the property cost when it is rebuilt and all of that becomes an asset for depreciation when you actually place the property in service for rental purposes.
The cost of the property to you right this minute is the fair market value (FMV) on the date of death of the deceased, plus the demolition costs. One the property is available for rent, regardless if it is actually rented you will be able to begin using your expenses.
Maintenance is not going to be an expense which includes utilities, including sewer fees. If you do not end up creating a rental unit and you end up selling it, you will use the cost basis described as the purchase price against any sales price you might have and of course less any selling expenses.
@psubradster
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