Home improvements for medical reasons are tax deductible, but only to the extent that they do not increase the value of the home. Consult with a realtor to make this determination. Note: Improvements to accommodate a disability (e.g., a ramp for wheelchair access) are deductible without regard to any increase in property value.
Debt used to buy, build, or construct a principal residence or second home and that generally qualifies for a full interest expense deduction.