Swimming pool medical expense deduction
From: Sam Smith
Date: September 14, 2014
Re: Medical Expense Deduction under IRC 213 for Swimming Pool
The taxpayer, Susan, suffers from severe osteoarthritis in both knees and has a hard time living comfortably. Susan has taken many precautions to better her health including: cortisone injections, painkillers, physical therapy, and arthroscopic surgery. Being that this is a hereditary disease, the doctors predict that it’s only going to get worse. The key to alleviate the pain is to keep moving, thus it is extremely painful for Susan to remain active. Swimming maintains good cardio with little to no impact; therefore her doctor prescribed her to swim daily. She is hesitant to go to the city pool …show more content…
Reg § 1.213-1(e)(1)(iii) states that “a capital expenditure for permanent improvement or betterment of property which would not ordinarily be for the purpose of medical care may, nevertheless, qualify as a medical expense to the extent that the expenditure exceeds the increase in value of the related property, if the particular expenditure is related directly to medical care. Therefore, Susan’s deductibility must take into account the value of her home. Given that the value of her home appreciates once the pool is installed, she can only deduct the amount in excess of the fair value increase.
Contrary to the supporting authority above, Carl F. Worden, Jr., TC Memo 1981-366 is a dissenting case in Susan’s matter. The