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Dear Tax Talk,
I am installing a saltwater pool for exercise and to help alleviate symptoms from lifelong chronic
eczema. Due to back surgery, swimming is one of the few exercises I can do comfortably. Two health
clubs in our area have pools, but they are chlorinated, which makes my eczema worse. Can I write this
off of my taxes for medical reasons, and what documentation do I need?
-- Debra
Dear Debra,
Many people would love to get a tax deduction for building a swimming pool in their backyard. While many
people dream of that day, I see you're ready to take the plunge. You won't be swimming into uncharted waters.
While the full cost of the pool may not be deductible, part of its cost may qualify for
deduction as a medical expense. You can include in medical expenses amounts you pay for special equipment
installed in a home, or for improvements, if the main purpose is medical care
for you, your spouse or your dependent.
The key here is obviously "main purpose." While you can certainly ask your doctor to write
you a prescription for a pool, that alone may not sway the IRS. I found this in Wikipedia on eczema sufferers:
"Many patients find that swimming in the ocean will relieve symptoms and clear up the red patchy scales." Maybe
you should keep some before and after pictures.
The cost of permanent improvements that increase the value of your property may be partly included
as a medical expense. The cost of the improvement is reduced by the increase in the value of your property. The
difference is a medical expense. If the value of your property is not increased by the improvement, the entire
cost is included as a medical expense.
Amounts you pay for operation and upkeep of the pool qualify as medical expenses, as long as the
main reason for them is medical care. This rule applies even if none or only part of the original cost of the
capital asset qualified as a medical care expense. For example, your electricity to power the pumps, cleaning
services and filters would qualify for medical expenses.
You should also check your state's sales tax exemption for medical equipment. You may be able
to buy the pool materials sales tax-free.
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