Are you thinking of adding a swimming pool or central air-conditioning to your home? You may qualify for a tax break if the addition is made to alleviate a specific health condition. Get before-and-after appraisals as well a written recommendation from your doctor, stating the reasons the improvement was necessary (not just desirable) to treat a specific condition. The amount you spent that did not increase your home’s value becomes a medical deduction.
Say your doctor tells you to install central A/C to help you cope with asthma, allergies or respiratory problems. You spend $35,000 and a local real estate broker provides a letter saying that your house, which was worth $200,000 previously, is now worth $210,000 as a result of the improvement. Because you spent $35,000 and your house appreciated by $10,000, you can use the other $25,000 as an itemized medical deduction. Such an expense may put you over the 7.5% threshold for deducting medical expenses
