No.
These expenditures will either be repairs and maintenance related and are operating expenses related directly to the property and would be deducted on your income tax return as repairs and maintenance expenses, or they will be considered capital expenditures and would be added to the cost basis of your property.
The payment of these expenses out of your net proceeds (1031 exchange proceeds) would create taxable boot because you have used your 1031 exchange proceeds to pay for costs that are not related to the acquisition of like-kind replacement property.
William L. Exeter
President and Chief Executive Officer
EXETER 1031 Exchange Services, LLC
A Qualified Intermediary (Accommodator) for 1031 Exchanges
EXETER Fiduciary Services, LLC
A Private Professional Fiduciary Services Company
http://www.exeter1031.comhttp://www.exeterdst.com