WHY did you spend the $25,000 on mold remediation? Was it in anticipation of selling the property? or was it simply to maintain the property? The difference is whether the cost is an expense (which is to your advantage) or an improvement (which is subject to depreciation).
it can be a 'squishy' discussion which way to account for it, but there may be some flexibility. One example: see this link. If in anticipation of selling, it's capitalized, otherwise, there is an argument for an expense.
https://bradfordtaxinstitute.com/Content/Mold-Removal-Repair-Expenditure.aspx
