This year’s April 18 deadline for filing your federal taxes is quickly approaching. So if you haven’t filed already, you’ll want to make sure you research all of your potential tax deductions.
Did you know that you might be able to write off the cost of your swimming pool installation or other related expenses?
Yep, you read that correctly. But here’s a bit of a caveat: the vast majority of pool owners are not eligible.
The deduction is only for those who have installed their pools specifically for important medical reasons. In other words, you’ll need to show that you need your swimming pool for medical reasons and no other purpose. The scenario may be somewhat rare, but there are in fact many such people who install their pools expressly for that reason.
A recent article in The Washington Post highlighted how this little-known deduction works:
“In rare cases, people who need a swimming pool for health reasons, say for physical therapy to help treat a chronic pain condition, may be able to write off the cost of the pool as a medical expense. But the write-off won’t come easy. Taxpayers may also have to show that the pool is not being used for any other purpose, a feat that may be difficult when kids or grandkids are also splashing around in the pool. [says Melissa Labant, director of tax advocacy for the American Institute of CPAs.] Some people may have to prove that it is too inconvenient for them to access a pool anywhere else, either because of distance or because of the severity of their condition, she adds.”
So beyond simply the medical requirement, you may also have to show that you don’t have access to a public pool nearby. Additionally, the pool should not be used by anyone else for any other purpose.
What kinds of medical situations warrant the installation of a pool?
A recent article in Forbes described a case in which “the taxpayer had emphysema and installed a swimming pool after his doctor ordered an exercise regimen. The primary purpose of the pool was medical care, so he got a fat deduction. It even covered part of the cost of heating the pool, pool chemicals and a proportionate part of insuring the pool area.”
Does your medical condition entitle you to a tax break for your pool?
While we can’t advise you on that here at Crystal Pools, we encourage you to speak with a tax professional. They will review your specific situation and let you know how if you’re eligible.