Is the cleanup and remodeling tax-deductible?

Believe that there is a difference between repairs and up-grades.

Betty, I am sorry for your loss as well as all that was left for you to care for. I agree a tax accountant is your best source for a proper answer. The rules regarding tax write offs change frequently so you need someone who is up to date. I do wish you the best as u move forward.

Betty, there's a condolence in your profile on your mother's recent death. Were the repairs, etc. made before your mother died, or after? And was she living in the house at the time the repairs were made?

I think the issues of hoarding remediation, if done by mandate of a local health department, and the mold remediation might possibly qualify as medical expenses since they clearly address serious health issues.

The other issue is who actually paid? Was it from your funds or your mother's?

Seeing a tax pro is definitely advisable, but you could also contact IRS by e-mail, which is what I do when I want a definite answer that I can rely on. If you call, it's sometimes hard to provide enough information to explain the situation. But if you e-mail you can address all the various issues involved, and you have the e-mail response for your records.

Pam is right, only the owner can use any tax deductions. And I believe those tax deductions only apply if the house is being updated prior to the sale of the house, and there is a time limit for those costs. Like if Mom lives in the house for another 2 or 3 years, those updating cost might no longer apply.

The fix up is only deductible for the person owning the property. The improvements offset the capital gain at the time of sale.

That is something you will need to ask an Accountant or someone who does income taxes. My gut feeling is probably not, as it was your Mom's choice to be a hoarder, and her choice not to maintain the house. I hope you didn't pay for the all the work being done. And that Mom reimbursed you for the property taxes.

Let us know what you find out from a professional doing income taxes.