13 January 2003 External T.I. 2002-0177535 - MEDICAL EXPENSE

Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the CRA.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ARC.

Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the CCRA.

Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ADRC.

Principal Issues:

1. Whether cost of TV closed caption device for hearing impaired qualifies as a medical expense
.....2. Whether monthly fee to closed caption service provider would qualify as medical expense

Position:

1.Yes
......2.Yes

Reasons:

1. Provided for in paragraph (q) of regulation 5700
2. device would not otherwise be operational

XXXXXXXXXX
Lena Holloway
2002-017753
January 13, 2003

Dear XXXXXXXXXX:

We are replying to your letter of August 1, 2002, concerning whether the cost of a device that enables the decoding of television signals for closed caption purposes (referred to herein as the "decoder") would qualify for the medical expense deduction. Such devices permit the vocal portion of the signal to be visually displayed so as to enable an individual with a hearing impairment access to television dialogue.

The cost of the decoder will qualify as a medical expense only if it meets all of the criteria set out in paragraph 118.2(2)(m) of the Income Tax Act (the "Act"). To qualify under paragraph 118.2(2)(m), the decoder must (i) be described in section 5700 of the Income Tax Regulations; (ii) be prescribed by a medical practitioner; and (iii) meet such conditions as may be prescribed as to its use or the reason for its acquisition.

Paragraph (q) of section 5700 of the Regulations describes, "a device to decode special television signals to permit the script of a program to be visually displayed". Therefore, provided that a medical practitioner prescribes the decoder, for the use of a person that is hearing impaired, such a device would generally qualify as a medical expense. In addition, a monthly charge from the service provider, to render the decoder operational, would also qualify as a medical expense provided that the cost of the decoder is a qualifying medical expense.

The foregoing comments represent our general views with respect to the subject matter. As indicated in paragraph 22 of Information Circular 70-6R5, the above comments do not constitute an income tax ruling and accordingly are not binding on the Canada Customs and Revenue Agency. Our practice is to make this specific disclaimer in all instances in which we provide an opinion.

We trust the above comments are of assistance.

Yours truly,

Daryl Boychuk, LL.B
for Director
Business and Partnerships Division
Income Tax Rulings Directorate

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