Can you get a tax deduction for putting in a swimming pool at your home?
Generally, no. A pool is a nondeductible personal expense; it’s intended for recreation.
However, the costs of building and maintaining a pool can be deductible under § 213 of the tax code if the primary purpose of the pool is directly related to medical care.
In 1983, a taxpayer successfully deducted the cost of a swimming pool in the court case Cherry v. Commissioner.
In that case, the taxpayer was diagnosed with emphysema and told by his doctor to get exercise.
But the taxpayer didn’t immediately build a pool.
He first tried several types of exercise, but found that swimming worked best.
He then found a community pool, but it wasn’t open during the hours he was off work.
Only then did the taxpayer build a pool.
Specifically, he built a new house with an indoor pool so he could use it for exercise year-round.
And he primarily used the pool for medical reasons; he wasn’t having pool parties every week.
Even with all this, the IRS still fought him on the deduction because it said the pool wasn’t equipped with special medical equipment.
But the taxpayer prevailed in court, because he showed there were no feasible alternatives for him to improve his health.
Thus, he was able to deduct the pool as a medical expense under § 213.
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