As has been explained by @Carl any repairs or renovations done before the property became available for rent cannot be deducted. These costs should be added to the basis of the property. @Carl also explained that there is a step-up in basis as of his date of death. Any improvements, repairs, or renovations made before this passing would be included in the step-up basis.
You will get a deduction for depreciation from the date the property was available for rent. Since these costs are added to the basis (the price you paid for the property plus costs of repairs, improvements, and/or renovations equals basis). The value of the land is not deductible and must be subtracted from the total price of the FMV of the home.
You may not deduct the cost of improvements. A rental property is improved only if the amounts paid are for a betterment or restoration or adaptation to a new or different use. See the Tangible Property Regulations - Frequently Asked Questions for more information about improvements. The cost of improvements is recovered through depreciation.
You can recover some or all of your improvements by using Form 4562 to report depreciation beginning in the year your rental property is first placed in service, and beginning in any year you make an improvement or add furnishings. Only a percentage of these expenses are deductible in the year they are incurred.
Tips on Rental Real Estate
There is one minor exception to this rule: you can deduct up to $5,000 of your real estate start-up costs in the year that your rental is placed into service. The excess amount of real estate start-up costs over $5,000 will be amortized over a 180 month period.
Real Estate Rental Start-up Costs
TurboTax provides the following information for How Do I Enter Start-up Costs?
