The money i took out of a retirement account i used to pay for building a new house. Is this tax deductible?

[kleinrl]

I have a construction loan, but it was not enough to build my new house.

I took out money from my 401K to help pay for the new house build

Is this tax deductible?

[Lisa995 · Accepted solution]

No, the money you took from your 401K is not deductible, its a taxable transaction and if you're under 59 1/2 years old, will be subject to early withdrawal penalty as well.

[kleinrl]

Although your answer is correct, I already knew that, but mainly it only focused on the first part my post.  It did not address the last, and major, part of the post. And, maybe I didn't phrase it properly. The question is, "can any of the additional money I put into the construction of a new house be a deductible on my income tax?"

[Lisa995]

No, any additional money you spent building or improving your residence, just adds to the basis (cost) of the house

[kleinrl]

Thank you. That answers my question, although I was hoping it could be.