Pools & Hot Tubs Deduction

There is a great deal of mis-conception about the deductibility of Hot Tubs & Pools. 

First, you must have a doctor’s prescription. 

Second, how much did it really cost you?  The theory is the Pool or Hot Tub has added value to the home.  Let’s say the item cost $15,000.  It has not added $15,000 to the value of the home.  It’s like buying a new car.  Drive it off the lot and its worth less than when you purchased it. 

Let’s assume it has an added value to the home of $10,000.  That means you lost $5,000. 

You lost $5,000 BUT you must divide that by the number of people in the home.  If 4 people live there, your deduction is only worth $1,250. 

The deduction is included in medical expense which is limited by 7.5% of your Adjusted Gross Income. 

 

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