[step:Split the good cover and inherit smaller good covers on $U$, $W$, and $U \cap W$]Assume $P(n-1)$ for some $n \ge 2$, and let $N$ be a smooth manifold equipped with a good cover $\{W_1, \dots, W_n\}$ of cardinality $n$. Define the open subsets
\begin{align*}
U &:= W_n \subseteq N, & W &:= \bigcup_{i=1}^{n-1} W_i \subseteq N.
\end{align*}
Both are open submanifolds of $N$, and $N = U \cup W$.
We exhibit good covers of $W$, $U$, and $U \cap W$:
**Good cover of $W$.** The collection $\{W_1, \dots, W_{n-1}\}$ is by construction an open cover of $W$, with cardinality $n-1$. For any non-empty $S \subseteq \{1, \dots, n-1\}$, the intersection $\bigcap_{i \in S} W_i$ is either empty or diffeomorphic to $\mathbb{R}^{\dim N}$ because $\{W_1, \dots, W_n\}$ is a good cover of $N$. Hence $\{W_1, \dots, W_{n-1}\}$ is a good cover of $W$ of cardinality $n - 1$.
**Good cover of $U$.** The collection $\{U\}$ is a good cover of $U$ of cardinality $1$, since $U = W_n$ is diffeomorphic to $\mathbb{R}^{\dim N}$ (this is the $S = \{n\}$ case of the good cover property of $\mathcal V$ on $N$).
**Good cover of $U \cap W$.** We have
\begin{align*}
U \cap W = W_n \cap \bigcup_{i=1}^{n-1} W_i = \bigcup_{i=1}^{n-1} \bigl(W_i \cap W_n\bigr),
\end{align*}
so the collection $\{W_1 \cap W_n, \dots, W_{n-1} \cap W_n\}$ is an open cover of $U \cap W$ of cardinality at most $n - 1$ (discarding empty members preserves the cover and only decreases the cardinality). For any non-empty $S \subseteq \{1, \dots, n-1\}$,
\begin{align*}
\bigcap_{i \in S} (W_i \cap W_n) = \Bigl(\bigcap_{i \in S} W_i\Bigr) \cap W_n = \bigcap_{i \in S \cup \{n\}} W_i,
\end{align*}
which is either empty or diffeomorphic to $\mathbb{R}^{\dim N}$ since $\mathcal V$ is a good cover of $N$. Thus $\{W_i \cap W_n\}_{i=1}^{n-1}$, after discarding empty entries, is a good cover of $U \cap W$ of cardinality $\le n - 1$.
By the inductive hypothesis $P(n - 1)$ applied to $W$ and to $U \cap W$, and by the base case $P(1)$ applied to $U$:
\begin{align*}
\dim_{\mathbb{R}} H^k_{\mathrm{dR}}(U), \quad \dim_{\mathbb{R}} H^k_{\mathrm{dR}}(W), \quad \dim_{\mathbb{R}} H^k_{\mathrm{dR}}(U \cap W) < \infty \qquad \text{for every } k \ge 0.
\end{align*}[/step]