In general, major expenses (improvements) incurred while making a property ready to be sold are added to your basis in the property. The increased basis will reduce your taxable gain on the property. Maintenance repairs are not deductible, but you can include them in your selling costs if they were necessary to make the property saleable.
From IRS Pub 527: Vacant while listed for sale. If you sell property you held for rental purposes, you can deduct the ordinary and necessary expenses for managing, conserving, or maintaining the property until it is sold. If the property is not held out and available for rent while listed for sale, the expenses are not deductible rental expenses.
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