I think we can all agree it’s been a pretty HOT summer! It’s starting to feel like swimming pools are essential. So…that poses the question, is my pool tax deductible?
If you have a medical condition that a doctor feels would improve by adding a swimming exercise regimen, then the swimming pool could qualify as a deductible medical expense. Swimming and other water exercise must be prescribed as a treatment or physical therapy to alleviate your illness.
The pool must also be used solely for medical purposes. If the pool is used for any recreational purposes, it is no longer considered tax deductible. It is helpful to make modifications to the pool that are designed specifically for treatment purposes. The IRS may also question this deduction if there is an accessible pool close to your home that can be used to treat your illness.
The deductible amount would be equal to the difference between the cost of the pool and the corresponding increase in your home’s value. Maintenance costs are also deductible. These would include purchase of chlorine, cleaning services, repairs, etc.
Receipts and written medical documentation should be kept on file to support your claim for this deduction. It is important to note that medical expenses are only deductible if you itemize. Even then, only medical expenses that exceed 10% of your adjusted gross income are tax deductible.