Estimated Tax Tip Savings: A swimming pool you install for medical reasons could increase your tax deductions by $12,000 or more, giving you a tax savings of $3,000 or more depending on your tax bracket. Other such home improvements can be similarly deducted.
In middle school, a note from your doctor was the perfect thing to get you out of gym class. Now that doctor’s note might get you a tax-deductible swimming pool or other home improvements that allow you to increase your deductions. Here’s how it works:
If you buy a pool for medical reasons, tax law gives you a deduction for the cost of installation and for operating expenses, even though technically the pool is a capital improvement of your home.
This deduction applies to all equipment that you use in your home, workplace, or vehicle for medical purposes, including
lift equipment for vehicles;
accessibility ramps; and
But unless you take this deduction the right way, you might not get the tax benefit you want. As you read this article, you’ll see why you, as a small-business owner, are in the perfect position to ... Log in to view full article.