Same as a a baker who buys flour, sugar, frosting and then sells a cake You bought a busted down house, wood, drywall paint and sold a fixed up house To the IRS it's the same.  

We just replaced wood siding on a house & did the same extra steps.

How wrong I was and little did I know about how porous wood flooring and painted drywall is and how damaging animal contamination is and deep it goes into the building materials.You're probably right that it would be hard to get anything through lawyers to repair the animal damages.

I am also considering watering down some paint and painting the wood subfloor on the second floor to seal in drywall dust.

Original Windows and wood floors restored to maintain the character of the home accompanied by modern interior aesthetic.

More sanding means you get closer to the original wood color because stains only penetrate so far. 

Update the flooring from carpet to wood and some painting.

Utility costs are a major consideration at -40f and -50f especially running on heating oil or wood heat (most places in Fairbanks aren't hooked up to natural gas).

Perhaps someone who maybe able to use some of the reclaimed wood?

When I was there they had a wood stove going and were smoking up the house so badly that I could barely go inside.