If a woam was recently diagnosed with a severe case of degenerative arthritis. H

Question

If a woam was recently diagnosed with a severe case of degenerative arthritis. Her doctor

has strongly recommended water therapy to relieve her pain, slow the degenerative process, and

enhance her mobility. While she has a huge home, but do NOT currently have a pool. and

she saw an existing house, with a large pool, for sale. While this house is big even

by their standards, they thought that it might make sense to buy the new house if part of the cost of the

house might be allocable to the pool and deductible for tax purposes. what is the

potential tax consequences for her of buying the new house.

Explanation / Answer

The potential tax consequences will be reduced on purchasing the house on medical grounds because she will show the reason of purchase and the medical claims. A part of the cost of the house is allocated to the pool and it is deductible for tax purpose but there can be significant reduction in the same as it can be claimed in her medical bills. she can show the same as medical requirement and she might be saved from the tax that is specifically allocated to the pool

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