Swimming Pool Tax Credit?

[2Hipp]

We got a quote for an IG FG pool and the sales person mentioned that you can get a tax credit for installing a pool if your doctor recommends swimming as therapy for arthritis or injury and I think she mentioned diabetes.

Has anyone done this? If so what percentage of the pool cost can be recouped by doing so?

Thanks,
Bill

[DogPaddle]

Bill--you should contact a tax consultant for this info. I have a friend who had polio as a child and her pool was a total write-off.

[webfeet]

http://hometown.aol.com/hbmurphyjr/Swimpool.html

I did an ask.com search- there is a provision in the Federal tax laws that addresses this. Let us know how it goes.

[2Hipp]

Thanks for the link.

I had lyme disease when I was 17 and have had joint pain and I'm not sure if it's related to the lyme disease or me getting older. I've always heard that affects of the disease can stick with you or re-occur at any time. I think I'll explore this further with an accountant to see if I would qualify.

One thing I noticed in the info is the therapeutic source (a pool in this case) must be available for use everyday. Not sure how this would work if you live in an area like I do where the pool would need to be closed during the winter.

[cleancloths]

Might be possible, but a sure way to be audited - make sure all your other ducks are in perfect order if you claim this.

[simsjim]

hmm...my property taxes are actually higher because of the pool...:confused:

But that is local jurisdiction. I know in some cases gunite, concrete or fiberglass pools create higher taxes than IG vinyl liners. Something to do with the permanency of the "fixture". I think the IG vinyl is not considered "real property" but "portable".

It would be neat if someone with some tax/property experience contributed to the thread. "Without offering legal advisement, of course."

I wonder if I could write off renovations I had to a pool that was present when I moved in, if I could prove that I needed the pool for therapeutic use.....then again, like it was said before, I close my pool during the colder months.

[2Hipp]

Might be possible, but a sure way to be audited - make sure all your other ducks are in perfect order if you claim this.

I agree that this would raise some flags but I surely wouldn't do this without having prior diagnosis/referral from my doctor and speaking with an accountant.

[shrike]

I did a lot of research on this, and learned a lot. Just search the net by "swimming pool tax credit" and you can also verify with your CPA like I did.

I also saw several real life examples of allowed and rejected deductions. Here is what I found - (this is mainly off the top of my head - research your own situation first, and chat with your tax guy!!!!)

1) If medically recommended, and backed up with appropriate doccumentation. (a perscription note will not do - everyone knows a doctor with a perscription pad. Be ready to provide medical records, disability analysis, hospital bills, etc. IRS may also require a third party MD opinion at their own expense) Mine was my wife with a stroke at age 37(Thanks Othro-Evera:( ).

2) you can only deduct the proportionate % used for medical rehab. Thus with me and by three kids also swimming for entertainment, the allowed % would be adjusted to basically 1/5.

3) the base deduction would be calculated on the minimum acceptiable pool needed. Thus for swimming laps, the IRS has a history of approving a simple lap pool say 10'x20' rectangle, plain vanilla ammenities.....and rejecting/ questioning the extra cost of optional features - water features, landscaping, rock features, patio areas, etc.

Basically immagine a nice pool you would like to see - vs one you would immagine seeing in a hopital rehab unit. This deductible pool is a medical device to be used for medical purposes, right?

Sooooo if you spend $30K...50K+....etc on a pool, the IRS may say a $10K pool would have worked, then you must reduce the deduction by the % it raises the value of the property (acording to the IRS/ local tax office - not according to reality), and also, as in my case, Wife would get medical use, and the rest of us recreation, so that is 1/5 and at the end of the day, the real credit is low.

4) the ammount you deduct would still need to be over your medical deduction level - I cant remember what it is, but you remember if you are making say $100K, you need at least 7,000 or so in medical bills before itimising has any impact. With my company healthcare, I have not had enough in medical bills/ prescriptions to itimise medical for 2 years now.


5) lastly......Almost an automatically GUARANTEED IRS AUDIT.

My conclusion? (My situation only)

forget the medical deduction, take a bit larger home improvement loan than I really need to, squirrel away the extra cash, and take the home improvement/ second mortgage interest tax deduction......

PS - the brief nominal consultation fee from my tax guy on this topic is deductible too.