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.
Principal Issues: Whether all expenses incurred to grow marihuana under a personal-use production licence to produce and keep marihuana for the medical purpose of the holder, are eligible medical expenses for purposes of the medical expense tax credit
Position: No
Reasons:
With the exception of the cost of seeds purchased from Health Canada, expenses incurred by authorized users to grow their own marihuana are not eligible medical expenses.
D. Tiu
XXXXXXXXXX (613) 957-8961
2006-020958
November 14, 2006
Dear XXXXXXXXXX:
Re: Medicinal Marihuana
We are writing in response to your undated inquiry received on October 13, 2006 on the above subject. You inquired whether all of the expenses you incur to grow marihuana under a personal-use production licence to produce and keep marihuana for the medical purpose of the holder, are eligible medical expenses for purposes of the medical expense tax credit.
The particular situation in your letter appears to relate to a factual one. As explained in Information Circular 70-6R5, it is not this Directorate's practice to comment on proposed transactions involving specific taxpayers other than in the form of an Advance Income Tax Ruling. Should your situation involve a completed transaction, you should submit all relevant facts and documentation to the appropriate Tax Services Office for their views. However, we are prepared to provide the following general comments.
Subsection 118.2(2) of the Income Tax Act (the "Act") provides a list of the types of expenditures that qualify as medical expenses for purposes of the medical expense tax credit. Effective for the 2005 and subsequent taxation years, new paragraph 118.2(2)(u) of the Act adds to the list of eligible medical expenses certain amounts paid on behalf of a patient who is authorized to possess marihuana for medical purposes under the Marihuana Medical Access Regulations or section 56 of the Controlled Drugs and Substances Act. With the exception of the cost of seeds purchased from Health Canada, expenses incurred by authorized users to grow their own marihuana are not eligible medical expenses for purposes of the medical expense tax credit.
Yours truly,
Robin Maley
Section Manager
For Division Director
Business and Partnerships Division
Income Tax Rulings Directorate
Legislative Policy and Regulatory Affairs Branch
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