IRA rental purchase tax question.

[Denise Frazier]

So I bought a property using money from an old IRA. I didn't do the self directed since it was only $20K. The setup cost along with the yearly fee would be more than the 2k penalty for using the money. Here's my question: Could my expenses to fix up the house (it needs a lot) be used to offset the Penalty and tax I will generate from using this IRA?