HOW TO DEDUCT YOUR SWIMMING POOL AND OTHER HOME IMPROVEMENTS AS MEDICAL EXPENSES — ALL LEGAL IF YOU DO IT RIGHT

Making home improvements, such as installing a swimming pool, for medical reasons may qualify for tax deductions, but it’s crucial to navigate the guidelines correctly. Here’s how to deduct your swimming pool and other home improvements as medical expenses — legally and within the guidelines:

1. Prescription Requirement:

To qualify for a swimming pool tax deduction, a written prescription from a medical professional is often necessary. The prescription should explicitly recommend the installation of a pool or other home improvements for medical purposes.

2. Specific Medical Condition:

The home improvement, such as a swimming pool, should address a specific medical condition or provide therapeutic benefits. For example, a pool may be recommended for individuals with mobility issues or certain medical conditions that benefit from aquatic therapy.

3. Cost Allocation:

Only the portion of the home improvement cost directly related to medical necessity is eligible for deduction. Keep detailed records and receipts to allocate costs accurately, ensuring that the claimed expenses align with the medical purpose.

4. Ongoing Medical Care:

The swimming pool or home improvement should be part of ongoing medical care. It’s essential to demonstrate that the improvement is not merely a luxury but a necessary component of medical treatment and care.

5. Medicaid and Health Insurance:

While Medicaid and health insurance generally do not cover the cost of a swimming pool or similar home improvements, there may be exceptions. Always check with your insurance provider or Medicaid to understand their policies and potential coverage for specific medical necessities.

6. Tax Deduction Documentation:

Keep detailed documentation, including the prescription, invoices, and receipts, to substantiate your claim for a swimming pool tax deduction. Proper record-keeping is crucial in case of an audit.

7. Qualified Medical Expenses:

Ensure that the swimming pool or home improvement qualifies as a medical expense under IRS guidelines. Deductible expenses typically include those primarily for the prevention or alleviation of a physical or mental defect or illness.

8. Consult Tax Professionals:

Tax laws can be complex, and deductions for home improvements may vary. Consult with tax professionals, such as accountants or tax advisors, to navigate the specific regulations and ensure compliance.

Remember, the ability to deduct a swimming pool or other home improvements as medical expenses hinges on meeting stringent criteria. Following these guidelines and seeking professional advice can help ensure that your deductions are legal and in accordance with IRS regulations.