There are two different events going on.
You took a large distribution from retirement and deferred comp.
- From what you described; this is all taxable.
- If you're over 59 1/2 it is not subject to the 10% penalty.
You paid off your mortgage and made home improvements.
- Since you paid off your mortgage it will reduce your itemized deductions.
- Other than that, there is no change in your tax status.
- You remodeled and made home improvements.
- Not counting repairs, this will be added to your homes cost basis that will be realized when you sell your home.
If this does not completely answer your question, please contact us again and provide some additional details.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
