First time home buyer

[Reynald Jean]

First of, I would like to say Happy NEW YEAR to all.

I'm a FHB. if I buy a house for $180k and I spend $55k to fix it does that mean I overpay for the house? (the house in that neighborhood are selling for $220k move in ready). by spending that much to fix up the kitchen, add a master bathroom and a laundry room will that increase the value of the home, and how much of that $55k can I deduct on my taxes. 

thanks.