16 February 1999 External T.I. 9902105 - MEDICAL EXPENSES - RENOVATIONS

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 Department.

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

Principal Issues: Whether or not the addition of a “sitting area” in a bedroom could qualify as a medical expense under 118.2(2)(l.2) of the Act?

Would the cost of removing a deck and replacing such a deck qualify as a medical expense?

Position: No.

The removal cost could qualify while the replacement would not qualify.

Reasons: The addition of a “sitting area” within a bedroom does not make the bedroom more mobile or functional.

The removal cost was necessary in order to expand the living room. However, the new deck does not make the patient mobile or functional within the dwelling.

		February 16, 1999

	Surrey Taxation Centre	HEADQUARTERS
	Enquiries and Adjustments	Jacques E. Grisé
		957-8953
	Attention:  Carla Fraser
		990210

Medical Expenses - Renovations

This is in reply to your memorandum of January 20, 1999, requesting our review of the adjustment request received in your office concerning a claim for medical expenses relating to home renovations and alterations.

The taxpayer, XXXXXXXXXX, purchased a two story house and made renovations and alterations to the house to accommodate her disabled mother who lives with her. The living room and kitchen were enlarged to make it easier for the mother to get around in her wheelchair. This expansion necessitated the removal and replacement of an upper deck. The mother’s bedroom was also enlarged to give her more room as well as to create a “sitting area” which is large enough to turn into another bedroom for a full-time nurse in the future.

Your two specific questions are:

• Can the expansion of the disabled person’s bedroom to accommodate a future nurse be claimed as a medical expense?
• In renovating the living room to expand it, can the cost of replacing the upper deck be claimed since this is actually a structural change rather than a renovation?

In order for a reasonable expense relating to renovations or alterations to a dwelling of a patient (i.e., the mother) to qualify as a medical expense, pursuant to paragraph 118.2(2)(l.2) of the Income Tax Act, it must be an amount paid to enable the patient to gain access to, or to be mobile or functional within, the dwelling. In our view, the addition of a “sitting area” in a bedroom which is large enough to turn into another bedroom for a full-time nurse in the future would not be an expense that would enable the mother to be more mobile or functional within the dwelling.

Since the cost of dismantling the upper deck seemed necessary and integral to the expansion of the living room, such cost would be eligible. However, the cost of replacing the upper deck would likely not be eligible since it is not a cost that would enable the mother to be mobile or functional within the dwelling.

J.F. Oulton, CA
Manager
Business, Property and
Employment Income Section III
Income Tax Rulings and
Interpretations Directorate

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