Federal Tax Credits & Deductibles for Pool Lifts

Important Tax Incentives for Improving Accessibility

Your purchase of a pool lift products may qualify you for a special tax incentive on your tax return. These tax incentives are available to individuals and businesses that incur expenses to accommodate the needs of someone who is disabled.

Individuals

The Internal Revenue Service lets you deduct in full, as medical expenses, any home improvements and purchases made to accommodate someone in the family who is disabled.

Note: If you’re claiming expenses as medical deductions, you can deduct only the amount of your expenses that exceed 7.5% of your adjusted gross income.

These deductions must be itemized separately with appropriate documentation (receipt), and totaled on the “Medical and Dental Expenses” portion in Schedule A of your annual income tax return (Form 1040). Please speak with your Accountant or a qualified tax preparer for more information.

Businesses

Two tax incentives are available to businesses to help cover the cost of making access improvements. The first is a Disabled Access Credit that can be used for architectural adaptations, equipment acquisitions, and services such as sign language interpreters. The second is a tax deduction that can be used for architectural and transportation changes.

Disabled Access Credit Small businesses with 30 or fewer employees or total revenues of $1 million or less can use the Disabled Access Credit (Internal Revenue Code, Section 44). Eligible small businesses may take a credit of up to $5,000 (half of eligible expenses up to $10,250, with no credit for the first $250) to offset their costs for access, including barrier removal from their facilities (e.g., widening a doorway, installing a ramp), provision of accessibility services (e.g., sign language interpreters), provision of printed material in alternate formats (e.g., large-print, audio, Braille), and provision or modification of equipment. To apply, you must fill out the Disabled Access Credit form (form 8826) and provide appropriate documentation in your tax return. Please speak with your Accountant or qualified tax preparer for more information on how to take advantage of this benefit.

Tax Deduction The tax deduction allows a business of any size to expense up to a maximum of $15,000 per year of items that normally must be capitalized (depreciated). This deduction may be used for expenses associated with the removal of architectural or transportation barriers in association with a trade or business that complies with applicable accessibility standards. Small businesses can use these incentives in combination if the expenditures incurred qualify under both the tax credit and tax deduction.

This information has been compiled only for your convenience, and is not intended to take the place of professional consultation or official documentation. Please speak with an Accountant or qualified tax preparer for complete details about these programs.

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