Is the cost of mortgage reinstatement tax deductible?

[Arthur Schwartz]

I may be reinstating a mortgage which fell into foreclosure, and using the property as rental real estate. Is the cost of reinstatement, tax deductible, on the basis that it is the cost of acquiring the investment property?  Or is the cost of reinstatement simply part of my basis and this reduces any capital gain or loss at time of sale; in which it would be similar to a down payment on a mortgage? (I have not yet done my first deal).