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.
Basic Rules
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.
Medical Exceptions
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.
References
- 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
- American Home Shield. "Selling a House with a Pool How to Make a Splash in the Market." Accessed April 24, 2020.
- State of California Department of Consumer Affairs. "Contractors State License Board." Accessed April 25, 2020.
- HomeAdvisor. "How Much Does a Pool Cost?" Accessed April 25, 2020.
- SwimmingPoolPros.org. "Outdoor Swimming Pool Designs in Detail." Accessed April 25, 2020.
- Foreign Policy. "Different Types of Pools and Everything that you Need to Know about Them." Accessed April 24, 2020.
- Dave Ramsey. "Does a Swimming Pool Increase or Decrease Your Home’s Value?" Accessed April 24, 2020.
- U.S. Consumer Report Safety Commission. "Latest Pool Safely Stats: At Least 163 Children Fatally Drowned in Pools and Spas This Summer." Accessed April 24, 2020.
- Realtor.com. "Does a Pool Add Value to a Home? Diving Into the Pros and Cons." Accessed April 24, 2020.
- Sahara Construction & Custom Pools. "How Much Does It Cost to Build and Maintain a Swimming Pool?" Accessed April 25, 2020.
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