Case:
Last year, Mr. Smith was involved in an automobile accident, severely injuring his legs. As a part of a long-term rehabilitation process, his physician prescribes a daily routine of swimming. Because there is not readily available public facility nearby, Mr. Smith purchases a house with a pool for $175,000. Replacing the pool would cost $20,000. The existing pool increases the fair market value of the house by $8,000. Mr. Smith spends $500 maintaining the pool and $1,800 in other medical expenses. Mr. Smith wants to know the total amount of medical expenses that he may claim in the current year. His AGI is $60,000.
Relevant Tax Law: IRC Sec. 213(a) states that “there shall be allowed as a deduction the expenses paid during the taxable year, not compensated for by insurance or otherwise, for medical care of the taxpayer, his spouse, or a dependent to the extent that such expenses exceed 7.5 percent of adjusted gross income. Sec. 213 (d) defines medical care as amounts paid for:
(A) for the diagnosis, cure, mitigation, treatment, or prevention of disease, or for the purpose of affecting any structure or function of the body, (B) for transportation primarily for and essential to medical care (C) for qualified long-term care services or (D) for insurance (http://www.taxalmanac.org/index.php/Internal_Revenue_Code:Sec._213._Medical,_dental,_etc.,_expenses)

Treasury Regulations, Subchapter A, Sec. 1.213-1:
“Reg. Section 1.213-1 permits a deduction of payments for certain medical expenses. A deduction is allowable only to individuals and only with respect to medical expenses actually paid during the taxable year.
Under subsection 1.213-1€(1)(iii), Capital expenditures are generally not deductible for Federal income tax purposes. However, an expenditure which otherwise qualifies as a medical expense under