In most cases, the Internal Revenue Service treats a swimming pool addition on your home as a personal expense that isn't deductible. However, there are a narrow range of circumstances in which you can get tax breaks for your pool, depending on its purpose.
Personal home additions and renovations, such as a swimming pool addition, generally aren't tax-deductible. However, the way you finance the addition may lead to some tax breaks. Using home equity financing, such as a loan or equity line of credit, offers deductions. The interest on loans secured with your property is tax-deductible. Therefore, if you take out a second mortgage or use a HELOC to finance the pool, you can normally deduct the interest.
Though rare, there have been situations where people have been able to deduct pool additions as medical expenses when itemizing taxes. To do so, the pool must be used primarily to treat medical conditions, according to TurboTax.
Emphysema and arthritis are examples of conditions that can improve with regular swimming. Getting a doctor's order or prescription to swim regularly is a helpful defense if claiming a pool as a tax break.
- TurboTax: Top 10 Oddball Tax Deductions
- eFile.com: Unusual Tax Breaks, Tax Deductions, and Tax Exemptions
- RealEstate.com: Can I use Home Improvements as a Tax Deduction?
- TurboTax: Deducting Mortgage Interest FAQs
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Neil Kokemuller has been an active business, finance and education writer and content media website developer since 2007. He has been a college marketing professor since 2004. Kokemuller has additional professional experience in marketing, retail and small business. He holds a Master of Business Administration from Iowa State University.