|Yes! A Therapy Pool Can Be Tax Deductible!|
There are certain situations where both the purchase and continued maintenance of your Therapy Pool "may" be 100% tax deductible as a medical expense. How do you determine if it will qualify as a medical expense? According to the IRS publication 502, medical expenses are the "costs of diagnosis, cure, mitigation, treatment, or prevention of disease, and the costs for treatments affecting any part or function of the body." These can include the costs of equipment, supplies, and diagnostic devices needed for these purposes. However, medical care expenses must be primarily to alleviate or prevent a physical or mental defect or illness.
It is important to understand that this "deduction" does not include expenses that are merely beneficial to general health and wellness; such as exercise, or weightloss. An easy way to determine whether or not the purchase and maintenance of your Therapy Pool can be tax deductible is to ask; "Is it Doctor Prescribed?" If you have a prescription from a doctor for aquatic therapy (also known as water therapy or aquatherapy), then yes, the purchase and continued maintenance can be 100% tax deductible. Now does this mean you can go out and spend $50,000 on an Endless Pool, Swim Spa or some other highly expensive warm water source? Well, maybe in some tax brackets. But most of us are far from being in that tax bracket.
A Therapy Pool can qualify for a tax deduction for the following reasons; it is not considered a home improvement, and, if the whole purpose of the pool is for doctor prescribed therapy only, then it meets the standards under IRS form number 502.
Some additional information you should know is that you can also include in medical expenses any amount you pay for special equipment installed in a home, or for improvements, if their main purpose is medical care for you, your spouse, or your dependent. The cost of permanent improvements that increase the value of your property may be partly included as a medical expense. But, the cost of the improvement is reduced by the increase in the value of your property. Only the difference is considered a medical expense. If the value of your property is not increased by the improvement, then the entire cost can be included as a medical expense. Actual increase in the value to your home is best determined by an appraisal and may not be related to your actual purchase value.
If swimming and other water-based exercises are prescribed as treatment or part of a doctor-recommended physical therapy, then the cost of purchasing your Therapy Pool may be 100% deductible as a medical expense. However, the IRS is likely to question the deductions because of the possibility that the pool may be considered for recreation. If you can show that the Therapy Pool is specially equipped to alleviate your condition and is not generally suited for recreation, then the IRS may likely allow the deduction.
Here are two examples of how several Therapy Pool customers were allowed to deduct their pool purchase.
1.) The IRS allowed a deduction for the Therapy Pool purchase by several osteoarthritis patients, whose physicians had prescribed swimming several times a day in warm water as treatment. These customers further presented video showing how the use of the pool daily was per the doctor-recommended therapy. The IRS can be leery about deductions, but a well-documented case is considered valid.
2.) Another taxpayer had a child with emphysema and purchased a Therapy Pool after his doctor told him to develop an exercise regime for the child. The parent swam with the child in it twice a day and improved the child's breathing capacity. The tax court allowed the deduction of the pool as a medical expense because its primary purpose was for medical care. He was also allowed to deduct the pool-heating costs, pool chemicals and part of insuring the pool area as per his homeowner's insurance.
Purchasing a Therapy Pool is both affordable and easy - and if it is for doctor-prescribed medical purposes, then the government has made allowances for that purchase and the associated costs, to be 100% deducted from your annual tax bill. Always consult a qualified tax preparer for accurate advice as it relates to your taxes.
Disclaimer: this information is provided as examples and guidelines only. We are not qualified tax professionals and as such are not qualified to speak about your specific tax situation. Always consult a professional tax preparer to examine your needs and your qualifications under the law. Thank you for reading.