NVM, I found a detailed, educated answer that was posted by TurboTaxDeeS.
Yes, you may able to claim the interest as an itemized deduction if you financed this home improvement.
A qualifying loan is one that is taken out to add "capital improvements" to your home, meaning the improvement must increase your home's value, adapt it to new uses, or extend its life. Examples of capital improvements are: adding a third bedroom, adding a garage, installing insulation, landscaping, solar panels and more.
Include this home improvement interest expense under the same section as you would Home Mortgage Interest.
To enter your Mortgage Interest in TurboTax Online or Desktop, please follow these steps:
Once you are in your tax return, click on the “Federal Taxes” tab ("Personal" tab in TurboTax Home & Business)
Next click on “Deductions and Credits”
Next click on "jump to full list" or “I’ll choose what I work on”
Scroll down the screen until to come to the section “Your Home”
Choose "show more", then Mortgage Interest, Refinancing and Insurance
It is OK to show your home improvement interest expense as mortgage interest under the 1098 section of Schedule A. Just keep a copy of your loan information with your tax records, so if you are contacted by the IRS, you will just need to provide an explanation of your situation (that your additional mortgage interest is related to a home improvement loan and provide the IRS with the details of this loan).
Additionally, if you are claiming a sales tax deduction in your home state, you can include the sales tax paid on building materials as a major purchase under this section.
A few things to remember about this major purchase deduction, you will only get this extra deduction if:
The sales tax rate on this major purchase needs to be the less than or same rate as your state's general sales tax rate.
You are taking the state's sales tax deduction as opposed to the state's income tax deduction.
You itemize on your return.
To enter this transaction in TurboTax, log into your tax return (for TurboTax Online sign-in, click Here and click on "Take me to my return") type "Sales Tax Deduction" in the search bar then select "jump to Sales Tax Deduction". TurboTax will guide you in entering this information.
To enter your sales taxes and major purchases in TurboTax Online or Desktop, please follow these steps:
Once you are in your tax return, click on the “Federal Taxes” tab ("Personal" tab in TurboTax Home & Business)
Next click on “Deductions & Credits”
Next click on "jump to full list" or “I’ll choose what I work on”
Scroll down the screen until to come to the section “Estimates and Other Taxes Paid ”
Choose "show more", then Sales Tax (start/update/revisit)
Choose - continue to sales tax and choose "Easy Guide"
If your state sales tax information is already entered you will need to edit it to enter your major purchases information.
On the screen that says Major Purchase - select "yes"
Enter your building material information and sales tax here on the next screen.
