Can you write off a pool?

[TemekuT]

This pool deductibility question is a standard example in any college income tax fundamentals textbook.

Let’s define “writing off the pool”. The interest related to the acquistion debt, whether in the form of mortgate debt or a HELOC, would generally be deductible.

In the case where a homeowner wants to deduct the costs TG mentioned, i.e., chemicals, cleaning, electricity etc, if a medical condition exist such as (let’s say) ALS in which swim therapy in a heated pool would alleviate the symptoms, those costs would generally be deductible on Schedule A to the extent that they exceed 7.5% of AGI, but only if the pool was specifically designed to meet the medical hydrotherapy needs as prescribed by a physician.

Let’s assume a homeowner arbitrarily deducts the same maintenance costs because he/she installs a pool due to something like “arthritis”, and there is no clear and urgent medical diagnosis and the pool is a standard backyard pool with diving board, slide and the usual configuration. The excess medical deductions will most probably trigger at least an IRS office audit and it will be imcumbent on the taxpayer to defend the tax treatment of the deductions, which will generally be disallowed and the taxpayer will be assessed an underpayment penalty and interest and perhaps a negligence penalty.

TG, be careful about the deductibility of anything in a HELOC or refi. The non-acquistion home equity debt interest cannot be deducted on the portion that exceeds $100,000. For example, if you HELOC your house to $130K and build an addition, that is acquisiton debt and is entirely deductible. But if you HELOC your house to $130K and buy jet skis, a lifted Ford F250, a Crystal Symphony cruise, and finance a bat mitzvah, the maximum interest deduction is allowed only on $100,000 of the debt. The remaining interest on $30,000 is disallowed.

When consumer interest was disallowed in 1991, there was a change in tax law that redefined consumer interest and instead of being phased out, it was merely redefined and shifted to deductibility as qualifed residence interest, and this led to the proliferation of HELOCS, which brings us to the mess we are today.

[temeculaguy]

Salt water is actually a little cheaper to maintain, the salt is cheaper than chlorine, but both are only a minor expense. Solar is another cost saver but no matter what filtration or heating method, the electricity is where you will get stung. Water has to move, pumps have to run about 4 hours in winter and 6 or 8 in summer, it’s like running your air conditioner every day. You live in Riverside county and SCE has higher rates than SDG&E, plus the way the bill works, the added electricity will all be at the highest over baseline rate, and last I checked, electricity rates aren’t going down. Get a friend with a pool who likes to entertain, it’s just like a boat, the best one is someone else’s.

[temeculaguy]

Salt water is actually a little cheaper to maintain, the salt is cheaper than chlorine, but both are only a minor expense. Solar is another cost saver but no matter what filtration or heating method, the electricity is where you will get stung. Water has to move, pumps have to run about 4 hours in winter and 6 or 8 in summer, it’s like running your air conditioner every day. You live in Riverside county and SCE has higher rates than SDG&E, plus the way the bill works, the added electricity will all be at the highest over baseline rate, and last I checked, electricity rates aren’t going down. Get a friend with a pool who likes to entertain, it’s just like a boat, the best one is someone else’s.

[temeculaguy]

Salt water is actually a little cheaper to maintain, the salt is cheaper than chlorine, but both are only a minor expense. Solar is another cost saver but no matter what filtration or heating method, the electricity is where you will get stung. Water has to move, pumps have to run about 4 hours in winter and 6 or 8 in summer, it’s like running your air conditioner every day. You live in Riverside county and SCE has higher rates than SDG&E, plus the way the bill works, the added electricity will all be at the highest over baseline rate, and last I checked, electricity rates aren’t going down. Get a friend with a pool who likes to entertain, it’s just like a boat, the best one is someone else’s.

[temeculaguy]

Salt water is actually a little cheaper to maintain, the salt is cheaper than chlorine, but both are only a minor expense. Solar is another cost saver but no matter what filtration or heating method, the electricity is where you will get stung. Water has to move, pumps have to run about 4 hours in winter and 6 or 8 in summer, it’s like running your air conditioner every day. You live in Riverside county and SCE has higher rates than SDG&E, plus the way the bill works, the added electricity will all be at the highest over baseline rate, and last I checked, electricity rates aren’t going down. Get a friend with a pool who likes to entertain, it’s just like a boat, the best one is someone else’s.

[temeculaguy]

Salt water is actually a little cheaper to maintain, the salt is cheaper than chlorine, but both are only a minor expense. Solar is another cost saver but no matter what filtration or heating method, the electricity is where you will get stung. Water has to move, pumps have to run about 4 hours in winter and 6 or 8 in summer, it’s like running your air conditioner every day. You live in Riverside county and SCE has higher rates than SDG&E, plus the way the bill works, the added electricity will all be at the highest over baseline rate, and last I checked, electricity rates aren’t going down. Get a friend with a pool who likes to entertain, it’s just like a boat, the best one is someone else’s.

[temeculaguy]

TemekuT, good point, I only assumed that a piggy would never heloc over 100k of non aquisition debt, we are a collection of the most frugal financial throwbacks I know, which is why I like it here. Silly me, I’ll go sit in my corner now.

Now if you heloc’d 35k for a pool and 20k for your honda accord or used lexus, you’ll be fine, but don’t take the car out of the house on a 10 or 30 year loan, get a standard term auto loan and have a pre-subordinated lien dropped on the house, but with the car as the primary collateral (house is just for show) so you can get a 1099-int.

Rent your jet ski’s or find friend who has them, don’t drive lifted trucks, it screams small pen&*, and pay cash for travel, so endeth the lesson.

[temeculaguy]

TemekuT, good point, I only assumed that a piggy would never heloc over 100k of non aquisition debt, we are a collection of the most frugal financial throwbacks I know, which is why I like it here. Silly me, I’ll go sit in my corner now.

Now if you heloc’d 35k for a pool and 20k for your honda accord or used lexus, you’ll be fine, but don’t take the car out of the house on a 10 or 30 year loan, get a standard term auto loan and have a pre-subordinated lien dropped on the house, but with the car as the primary collateral (house is just for show) so you can get a 1099-int.

Rent your jet ski’s or find friend who has them, don’t drive lifted trucks, it screams small pen&*, and pay cash for travel, so endeth the lesson.

[temeculaguy]

TemekuT, good point, I only assumed that a piggy would never heloc over 100k of non aquisition debt, we are a collection of the most frugal financial throwbacks I know, which is why I like it here. Silly me, I’ll go sit in my corner now.

Now if you heloc’d 35k for a pool and 20k for your honda accord or used lexus, you’ll be fine, but don’t take the car out of the house on a 10 or 30 year loan, get a standard term auto loan and have a pre-subordinated lien dropped on the house, but with the car as the primary collateral (house is just for show) so you can get a 1099-int.

Rent your jet ski’s or find friend who has them, don’t drive lifted trucks, it screams small pen&*, and pay cash for travel, so endeth the lesson.

[temeculaguy]

TemekuT, good point, I only assumed that a piggy would never heloc over 100k of non aquisition debt, we are a collection of the most frugal financial throwbacks I know, which is why I like it here. Silly me, I’ll go sit in my corner now.

Now if you heloc’d 35k for a pool and 20k for your honda accord or used lexus, you’ll be fine, but don’t take the car out of the house on a 10 or 30 year loan, get a standard term auto loan and have a pre-subordinated lien dropped on the house, but with the car as the primary collateral (house is just for show) so you can get a 1099-int.

Rent your jet ski’s or find friend who has them, don’t drive lifted trucks, it screams small pen&*, and pay cash for travel, so endeth the lesson.

[temeculaguy]

TemekuT, good point, I only assumed that a piggy would never heloc over 100k of non aquisition debt, we are a collection of the most frugal financial throwbacks I know, which is why I like it here. Silly me, I’ll go sit in my corner now.

Now if you heloc’d 35k for a pool and 20k for your honda accord or used lexus, you’ll be fine, but don’t take the car out of the house on a 10 or 30 year loan, get a standard term auto loan and have a pre-subordinated lien dropped on the house, but with the car as the primary collateral (house is just for show) so you can get a 1099-int.

Rent your jet ski’s or find friend who has them, don’t drive lifted trucks, it screams small pen&*, and pay cash for travel, so endeth the lesson.

[bonfire]

Had a pool once, and a Cocker Spaniel and a BF with a lifted truck. All bad ideas. Had BF with a Newfie and I loved that dog, really cried when we broke up. Find a BF with a pool AND a Newfie. You will be truly happy forever then Marion, I promise.

[bonfire]

Had a pool once, and a Cocker Spaniel and a BF with a lifted truck. All bad ideas. Had BF with a Newfie and I loved that dog, really cried when we broke up. Find a BF with a pool AND a Newfie. You will be truly happy forever then Marion, I promise.

[bonfire]

Had a pool once, and a Cocker Spaniel and a BF with a lifted truck. All bad ideas. Had BF with a Newfie and I loved that dog, really cried when we broke up. Find a BF with a pool AND a Newfie. You will be truly happy forever then Marion, I promise.

[bonfire]

Had a pool once, and a Cocker Spaniel and a BF with a lifted truck. All bad ideas. Had BF with a Newfie and I loved that dog, really cried when we broke up. Find a BF with a pool AND a Newfie. You will be truly happy forever then Marion, I promise.

[Author]

Posts