As tax season passes, you may be wondering how you can “catch a break” the next time you file. Interestingly enough, there may be some situations in which your swimming pool can qualify as a tax write-off!
(Disclaimer: Oak Wells Aquatics is not a professional tax advisor. In Florida, the tax treatment of a pool would generally follow federal guidelines and regulations. However, specific deductions and credits can vary from state to state, so it’s essential to consult with a tax professional or accountant familiar with Florida tax laws or the laws in your state to determine the eligibility of a pool for tax write-offs in that state.)
Common considerations for deducting a pool on taxes include its use for medical purposes, as a home improvement, for rental property, energy efficiency incentives, or business use. The applicability of these factors to your situation and any additional state-specific tax incentives would need to be evaluated by a qualified tax advisor.
Medical Expenses: If a pool is installed primarily for medical reasons prescribed by a doctor, such as for physical therapy, it might qualify as a medical expense deduction on your taxes. However, this deduction typically requires that the cost of the pool and its maintenance exceeds a certain percentage of your adjusted gross income. The VA (Veterans Affairs) has a grant that can be used to install a pool for exercise or hydrotherapy for our disabled veterans.
Home Improvement: If the pool installation is part of a larger home improvement project that increases the value of your property, you might be able to include a portion of its cost in the basis of your home, potentially reducing capital gains tax when you sell your home.
Rental Property: If you have a rental property and install a pool, you may be able to deduct a portion of the cost as a business expense, including maintenance and repair costs. However, this depends on whether the pool is considered a capital improvement or a repair.
Energy Efficiency: Some states offer tax incentives for energy-efficient home improvements, including certain types of pool equipment like energy-efficient pumps and heaters.
Business Use: If you have a home office or run a business from your home, and the pool area is used for business purposes, you might be able to deduct a portion of its cost as a home office expense.
Remember, it is essential to consult with a tax professional or accountant who can assess your specific situation and provide guidance on whether and how a pool might be deductible on your taxes. Additionally, tax laws and regulations can change, so what might be deductible now might not be in the future!
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