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 all regular fees paid to a nursing home, including any portion for food and accommodation, qualify as amounts paid for full-time care in a nursing home.
Position: Yes, if paid to a regular nursing home.
Reasons: An amount charged for food and accommodation in a place which does not ordinarily provide full-time nursing care to its residents would not be considered an amount paid for full-time care in a nursing home.
XXXXXXXXXX J. Gibbons
2000-000055
Attention: XXXXXXXXXX
February 7, 2000
Dear XXXXXXXXXX:
We are replying to your facsimile of January 5, 2000, in which you requested clarification concerning our position on nursing home expenses for purposes of the medical expense tax credit. In particular, you wish to know whether all regular fees to a nursing home, including any portion for food and accommodation, qualify as an amount paid for nursing home care for purposes of paragraph 118.2(2)(b) or 118.2(2)(d) of the Income Tax Act.
As requested, we have considered your questions and have provided some comments below. However, we cannot confirm the tax implications of particular transactions unless the transactions are proposed and are the subject matter of an advance ruling request submitted in the manner set out in Information Circular 70-6R3. Thus, our comments are of a general nature only.
In your letter, you refer to our recent interpretation, file #1999-000669, in which we stated that it is the Agency's position that the requirement for full-time care means that only payments made for medical and/or nursing services will qualify under these provisions. In the situation we were asked to consider, it was not clear whether the particular institution ordinarily provided full-time care to its residents. Generally, all regular fees charged by a nursing home, including any component for accommodation or meals, are normally accepted as being on account of full-time care in a nursing home. On the other hand, an amount charged for meals and accommodation in a place which does not ordinarily provide full-time nursing care to its residents would not be considered an amount paid for full-time care in a nursing home.
We trust that these comments will be of assistance.
Yours truly,
John Oulton
for Director
Business and Publications Division
Income Tax Rulings Directorate
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