The only part that is tax deductible is any interest that you paid. The interest would be deductible as mortgage interest, because even though this was not technically a mortgage, it was a loan that was secured by your home. (If you failed to pay the loan, you could have eventually lost your house.)
The cost of the improvement as well as all of the other administrative fees are not tax-deductible, but are added to the cost basis of your home, which may reduce your capital gains when you sell.
