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Deductions & credits
You can't claim these expenses as a deduction on Schedule A. As MarilynG1 points out above, cleanup expenses can only be used to reduce the fair market value (FMV) of your property.
According to Publication 551 (12/2022), Basis of Assets:
FMV is the price at which property would change hands between a buyer and a seller, neither having to buy or sell, and both having reasonable knowledge of all necessary facts.
See also Casualty Losses in the IRS's Topic no. 515, Casualty, disaster, and theft losses.
‎February 15, 2024
7:58 AM