Can a Swimming Pool Be a Tax-Deductible Expense?


KEN KING Can a Swimming Pool Be a Tax-Deductible Expense? Mar 11, 2020

Can a Swimming Pool Be a Tax-Deductible Expense?

These days, you can claim many things on your taxes. For example, if you work from home, you may be able to claim your home office and any equipment used for work. It’s even possible to claim your home pool as a deduction in certain situations. The installation and maintenance costs for your pool can give you a sizable tax deduction if you use it for medical or business purposes. As a leading swimming pool builder in San Diego, we are here to tell you whether you can deduct your pool from your taxes.

Medical Deduction

If you have a swimming pool installed because a doctor, physical therapist, or other healthcare provider recommended it as part of your medical treatment, it can be tax-deductible. Both the construction and maintenance costs for the pool can be deducted from your taxes. However, you must prove you were instructed to have it built specifically to treat a certain type of illness or medical condition instead of simply for leisure or general exercise. For example, if you have had a stroke and suffered paralysis on one side of your body, your doctor or physical therapist might recommend aquatic therapy. This would be the kind of verification you’d need to deduct your pool for medical purposes.

Business Deduction

It may also be possible to use your personal home pool for a business that involves teaching swimming lessons or other aquatic exercises. However, whether you’re able to deduct your pool as a business expense generally depends on the Internal Revenue Service. If the IRS considers your pool part of your home, it may not be deductible. If your pool is strictly used for business purposes and not for personal use at all, you may be able to deduct it from your taxes. Even if you do only use your pool for business purposes, you’re required to earn profits for three out of five years before you’re able to claim it on your taxes as a business expense.

Capital Improvements

Building a new pool on your property is considered a capital improvement. Essentially, this increases the value of your home, but you may not be able to deduct it from your taxes in the year it’s built. The best thing you can do is to keep your receipts or invoices for the construction, as you may be able to claim your pool on your taxes if and when you decide to sell your home.

Ongoing Expenses

Any ongoing expenses you incur as a result of maintaining your pool (if you use it for medical or business purposes) can be deducted from your taxes. You can also write off any necessary repairs you make to the pool when it’s used for these reasons.

Even if your pool isn’t tax-deductible, the benefits it offers your family in terms of exercise, relaxation, and social activity aren’t measurable in dollars. If you’re ready to add a pool to your home, make sure to have it built by one of the premier pool companies in San Diego. San Diego Pools has a top-notch team of experienced pool design and construction experts who are dedicated to building the pool that’s perfect for your family and providing you with the highest-quality service in the industry. Give us a call today at 888-707-7786.