Need assistance in how to run a supply to a powder room

I have a water heater (pictured below) that I need to replace. When I replace it, I will be putting in a taller water heater, which means that I have to cut some copper and make the shut off valve to my water heater higher. No issues there.

However, the wall behind the water heater to the right is a powder room. When I cut the copper pipe as needed to fit the new water heater, I was thinking of adding a T on the cold and hot so that I can run a supply to that powder room.

The pipe above the water heater is 3/4.

1. What size line do I need to run to the powder room when I put in the 'T''s? (Not sure if this matters, but its not going to be a powder room that is heavily used)...will 1/2 inch be all I need to run the supply?
2. Is there any issues putting a 'T' in the lines above the water heater? (I am thinking that since I have to cut already for the water heater, I might as well just put the T where I cut)

* I live in Indiana if that matters on code for anything.

Above Water Heater


Below Water Heater

You can put a tee anywhere that it is convenient on the hot and cold. 1/2" is fine to a powder room if you are talking a sink and toilet.

You can gain a few inches in height by just using shorter nipples off the waterheater.

I am not crazy about the WH flu running so close to the PVC drain pipe, but more important....it looks like single wall flue pipe. If so, it appears to be closer than 6" to the wall, and that is a big no-no. The easy fix is to replace it with double wall ( B vent) pipe.

Thanks Jimbo. Yes, the powder room is for a toilet and sink only.

Also, the vent is about 6" away from that PVC pipe (the pic does make it look like its right near it)

Shorter nipples doesnt seem to work as the gap is very short with the measurement of the new water heater (going from 40 to 50).

where are you going to find a "taller" water heater? Yours is the coventional size already. The only taller ones, and it is only by a few inches would be a 75 gallon one. Even then, your valve is well above where the water heater would be. As mentioned, the minimum clearance for a single wall flue pipe is 6".

Hmmm, I might have to measure the actual height of the new Water heater as its still in the box and I am approximating it from there...it very well may be packing that is raising it so high!!!

The "FVIR" regulations did make heaters slightly taller, but as I said, it was only by inches. But, nowhere near the amount you have available with the long galvanized nipples and copper tubing below the valve.

While you are measuring things, what about the distance from the flue pipe to the wall (as Jimbo mentioned above)?

In many places, the water heater is connected to the inlet and outlet pipes with flexible copper piping. As strange as it may seem, some places require this and others prohibit it! If it is allowed in your area, this makes the connection much simpler as you do not have to have precise length on the pipes. Do check you local codes before doing this.