The tax memorandum, Richard A. Polacsek, TC Memo 1981-569, presents a case that is similar to Brad’s.
In order for Richard A. Polacsek to strengthen his breathing techniques, it was necessary for him to install a pool in his backyard (in order to take part in daily swims). Henceforth, in 1975, Polacsek installed a pool that was 4 feet deep, 14 feet wide, and 28 feet long with no visible copings or diving boards in its proximity. The final cost of the pool totalled up to $10,516.26, which was $9,483.74 less than Brad’s $20,000 pool. In both cases, the initial market value of the house increased due to the installation of the pool. After Polacsek installed a swimming pool, the value of his house increased by $4,000, as justified by his appraiser.
