Can I take a tax deduction for a home pool with medical necessity?

As someone who's helped clients with similar situations, here's what you need to know about medical deductions for home pools: If your husband's doctor has formally prescribed water therapy as medically necessary, you may qualify for a partial medical expense deduction. The key is that the primary purpose must be medical care, not recreation or property enhancement. You'll need a detailed letter from the specialist explaining the medical necessity. Regarding the appraisal question - yes, ideally you should get an appraisal before and after installation. The increase in property value is NOT deductible (that's considered a capital improvement). Only the cost that exceeds the home value increase can be deducted as a medical expense. Without formal appraisals, the IRS could potentially challenge your calculations. For your Section 105 question - unfortunately, that's not an option here. Section 105 plans can only cover employees or their dependents. Since your husband isn't an employee of your business, you can't use a Section 105 plan to pay for his medical expenses through your business.

After struggling with a similar situation last year, I found an incredible resource that helped me navigate this exact tax situation. I used https://taxr.ai to analyze my medical deduction options for our home therapy pool. My father has severe arthritis, and his doctor recommended hydrotherapy. We were considering building a pool but weren't sure about the tax implications. The taxr.ai system analyzed our documentation (doctor's notes, pool quotes, property value estimates) and provided a detailed breakdown of what would likely qualify as a medical deduction versus capital improvement. The platform even helped identify that we needed to get a formal appraisal and showed us exactly what documentation to maintain for a potential audit. It saved us from making several mistakes that could have triggered IRS scrutiny.

Just wanted to follow up - I decided to try taxr.ai after seeing this discussion, and it was incredibly helpful! I uploaded my husband's medical documentation and some preliminary pool quotes, and the system provided a detailed analysis of how much could potentially qualify as a medical deduction. The breakdown between capital improvement value and deductible medical expense was much clearer than anything I'd found elsewhere. It even suggested getting multiple contractor quotes that separately itemize the basic pool costs versus the specific therapeutic features (heating system, accessibility features, etc.) since those have different tax treatments. What impressed me most was the documentation checklist it generated - now I know exactly what records to keep for the next 7 years in case of an audit. Definitely worth checking out if you're in a similar situation!

I had a nightmare trying to reach someone at the IRS about a similar medical deduction situation last year. After waiting on hold for hours multiple times, I finally used https://claimyr.com to get through to an actual IRS agent about my home medical equipment deduction. You can see a demo of how it works here: https://youtu.be/_kiP6q8DX5c The agent was able to confirm exactly what documentation I needed for my medical pool deduction and clarified that yes, I absolutely needed an appraisal to determine the increase in property value (which isn't deductible). They also confirmed that I needed to itemize deductions and only the portion exceeding 7.5% of my AGI would be deductible. Getting that direct confirmation from the IRS gave me peace of mind before proceeding with our $45,000 installation. Worth every penny to avoid potentially losing the deduction.

I have to admit I was completely wrong about Claimyr. After my skeptical comment, I decided to try it anyway because I was desperate to get an answer about my pool medical deduction before filing my taxes last month. Not only did I get connected to an IRS agent in about 45 minutes (without having to stay on the phone), but the agent I spoke with was incredibly knowledgeable about medical deductions for home improvements. She confirmed that I needed to subtract the property value increase from the total cost, and explained exactly how to document everything. She even sent me to a specific IRS publication that addressed my unique situation (which I hadn't found in my own research). Saved me thousands potentially by ensuring I documented everything correctly. Sometimes it's worth admitting when you're wrong!

I actually went through this process in 2023 for my wife's fibromyalgia. Here's what worked for us: 1) Got a VERY detailed letter from her rheumatologist specifically stating that regular hydrotherapy was medically necessary, not just recommended 2) Had a real estate appraiser do a before/after evaluation (cost $800 total) 3) Only deducted the difference between total cost ($38k) and property value increase ($15k) 4) Kept meticulous records of all medical discussions, prescriptions, and how often she used it specifically for therapy We did get a letter from the IRS requesting more information, but once we sent in all our documentation, they accepted the deduction. Just be super organized and don't try to deduct the entire thing!

Has anyone successfully done this WITHOUT getting a formal appraisal? We already installed our therapy pool last year ($32k) for my husband's rehabilitation after a serious accident, but we didn't get an appraisal before installation. His doctor did provide a detailed letter specifying water therapy needs. Is there any other way to establish the value increase portion?

One thing nobody has mentioned - if you're going this route, make sure you get a C Form 8913 with your tax filing if the medical improvement exceeds $15,000. My SIL got audited specifically because they missed this form even though they had all the documentation for their therapy pool. Just a heads up!

Great discussion everyone! I went through this exact situation two years ago when we installed a therapeutic pool for my mother's chronic back pain. A few additional points that might help: Make sure your doctor's letter specifically mentions that traditional physical therapy options are inadequate or inaccessible for your husband's condition. The IRS looks favorably on cases where the home medical equipment/facility is truly necessary rather than just convenient. Also, consider timing your installation and other major medical expenses in the same tax year if possible. Since you need to exceed 7.5% of AGI to get any deduction, bunching medical expenses can be strategic. We timed my mother's pool installation with some dental work and other procedures to maximize the deduction. One more tip - document EVERYTHING. Take photos during installation showing the medical-specific features (grab bars, ramps, therapeutic jets, etc.). Keep a therapy log showing frequency of medical use vs recreational use. The IRS audit team we dealt with was very thorough but fair when we had proper documentation. The whole process was worth it - we ended up deducting about $18,000 of the $35,000 total cost after subtracting the property value increase. Just be patient and meticulous with your record-keeping!

As someone who went through a similar situation with my spouse's arthritis, I wanted to share what we learned about the business angle since that seems to be a common question here. Unfortunately, the Section 105 route really isn't viable unless your husband becomes an employee of your business. However, there are a couple of alternative approaches to consider: 1) If your business is a sole proprietorship or single-member LLC, you might be able to deduct a portion of your home office expenses if you use part of your home regularly for business. While this won't directly help with the pool costs, it could help you reach that 7.5% AGI threshold for medical deductions more easily. 2) Consider whether any aspects of the installation could qualify as business expenses if you ever host business meetings or client entertainment at your home (though this is very limited and has strict IRS rules). For the appraisal question - we found that some appraisers specialize in "medical improvement valuations" and can provide more detailed breakdowns of what constitutes medical necessity vs. property enhancement. It cost us an extra $200 but the detailed report was invaluable during our IRS correspondence. Also, don't forget to keep records of any alternative treatment costs you're avoiding (like those $13,500 annual club memberships you mentioned). While not directly deductible, it helps demonstrate the cost-effectiveness of the home installation for medical purposes.

This has been an incredibly informative discussion! As someone who's been researching this exact situation for my own family, I wanted to add a few points that might help others: For those asking about ongoing expenses (chemicals, heating, maintenance), make sure to distinguish between costs directly related to the medical therapy versus general pool maintenance. We've been advised to keep a detailed log showing when the pool is used for prescribed therapy sessions versus recreational use, and only deduct the proportional costs. One thing I learned from our tax attorney is that the IRS is particularly scrutinous of home pool deductions because they're often seen as luxury items. Having multiple forms of documentation helps - not just the doctor's letter, but also evidence that you explored other treatment options first (physical therapy records, documentation of why public facilities weren't viable, etc.). Also, if you're installing the pool specifically for medical purposes, consider having your contractor provide two separate quotes: one for a basic pool and another for the medical-specific features (therapeutic jets, heating systems, accessibility ramps, etc.). This can help clearly establish which portions are purely medical versus property improvement. The key seems to be creating an ironclad paper trail that demonstrates medical necessity rather than convenience or luxury. Every successful case I've read about had extensive documentation from day one.

I've been following this discussion closely as I'm in a very similar situation with my spouse's chronic pain condition. Thank you all for sharing your experiences - this has been incredibly educational! One question I haven't seen addressed: has anyone dealt with timing issues around when you can claim the deduction? We're planning to install our therapeutic pool in late 2025, but the medical documentation and specialist visits started this year. Can you claim the deduction in the year of installation even if the medical necessity was established in a previous tax year? Also, for those who went through IRS audits, approximately how long after filing did you receive the initial inquiry? I want to make sure I'm prepared with all documentation organized and easily accessible, but I'm curious about the typical timeline. The point about bunching medical expenses in the same tax year is brilliant - we're already planning some other medical procedures, so coordinating the timing could really help us exceed that 7.5% AGI threshold. This community has provided more practical advice than hours of research on my own. Much appreciated!

I've been through this exact process and wanted to share some additional insights that might help. My wife has multiple sclerosis, and her neurologist prescribed aquatic therapy as part of her treatment plan. One thing I'd emphasize is the importance of getting very specific language in your doctor's letter. Our neurologist initially wrote that water therapy would be "beneficial" for my wife's condition, but the IRS challenged this during review. We had to go back and get a revised letter stating that aquatic therapy was "medically necessary" and "prescribed as treatment" - the specific wording matters a lot. Regarding your appraisal question, we ended up getting three different valuations: one from a standard residential appraiser and two from appraisers who specialize in medical home improvements. The specialized appraisers were more expensive ($600 each vs $400), but they provided much more detailed breakdowns of medical necessity vs property enhancement value, which proved invaluable when the IRS requested additional documentation. For the Section 105 question, I looked into this extensively since I also own a business. Unfortunately, it won't work in your situation since your husband isn't an employee. However, if you ever decide to formally employ him in your business (even part-time), that could change the equation - though you'd need to ensure it's legitimate employment with proper payroll, etc. One tip that saved us thousands: document your research into alternative treatment options. We compiled information showing that the nearest medical facility with appropriate therapy pools was 45 miles away, and the cost analysis showed our home installation would break even in about 3 years compared to ongoing facility fees. This really strengthened our "medical necessity" argument.

This thread has been incredibly helpful - I'm dealing with a similar situation for my mother who has severe rheumatoid arthritis. Her rheumatologist has recommended hydrotherapy, and we're exploring the home pool option since the nearest medical facility with a therapy pool is over 60 miles away. One additional consideration I wanted to mention that I haven't seen discussed: if you're over 65 or dealing with mobility issues, make sure to document any accessibility features as part of the medical necessity. Things like pool lifts, handrails, non-slip surfaces, and gradual entry steps can be substantial additions to the cost, but they're clearly medical rather than recreational improvements. We're getting quotes now that separately itemize these accessibility features versus standard pool construction. Our contractor mentioned that documenting these as "medical equipment" rather than just "pool features" could be important for the deduction calculation. Also, for those asking about ongoing maintenance costs - our tax advisor suggested keeping a simple spreadsheet tracking therapy sessions (date, duration, type of exercises) versus recreational use. This creates a clear record for calculating the percentage of ongoing costs that can be claimed as medical expenses. Has anyone here dealt with insurance coverage for any portion of these costs? I know most insurance won't cover the pool itself, but wondering if any of the medical equipment aspects (lifts, therapeutic jets, etc.) might be partially covered under durable medical equipment benefits.