The Tax Deductible Pool or Spa

You have a customer who is shopping around your store, looking for something to alleviate their pain relief. The research they’ve done says hydrotherapy is one of the best options for them but after seeing some price tags, they’re not so sure anymore. They’re weighing the pros and cons of buying a hot tub or pool.

This is a crucial moment for you and your business. Are you going to help them and elaborate on their pro list or let them walk out of the door empty handed, missing out on a great opportunity? 

Here’s something that you may want to let your customer know.

The expensive hot tub that’s designed to help with their condition, is tax deductible. If they have a doctor Rx or are open to get one, you’re saving them hundreds without losing anything on your end. What a selling point that is!

 


The pool or spa must have special features that are designed to alleviate a special medical condition, not for recreational use. It’s not as simple as buying a hot tub because of a sore back and claiming it. The first step to ensuring a customer can write this purchase off is a doctor note. Just like the one you got in middle school to dismiss you from gym class.

In fine print, publication 502 of the U.S tax code states:

“Medical expenses are the costs of diagnosis, cure, mitigation, treatment, or prevention of disease, and the costs for treatments affecting any part or function of the body. These expenses include payments for legal medical services rendered by physicians, surgeons, dentists, and other medical practitioners. They include the costs of equipment, supplies, and diagnostic devices needed for these purposes.” 

The IRS is likely to question the deductions because of recreational use. The consumer will have to be able to prove the main purpose is to aid in pain relief, rehabilitation, or alleviate a medical condition. They will also need to keep record of all records and receipts regarding the installment, construction, and maintenance.