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: Is the cost of : i. a home traction devise and
ii. a Body Blade;
an allowable medical expense pursuant to subsection 118.2(2) of the Act?
Position: No
Reasons: Neither devise is included in any of the paragraphs of subsection 118.2(2) of the Act. They are also not included as a devise or equipment that is prescribed in section 5700 of the Income Tax Regulations.
XXXXXXXXXX 2000-005338
Franklin S. Gillman, LL.L., CA
January 10, 2001
Dear XXXXXXXXXX,
Re: Eligible Medical Expense Tax Credit
This is in reply to your letter of October 27, 2000, wherein you requested our opinion as to whether a home traction device and a device called a Body Blade qualify for purposes of the medical expense tax credit.
Written confirmation of the tax implications inherent in particular transactions are given by this Directorate only where the transactions are proposed and are the subject matter of an advance income tax ruling request. The procedures for requesting an advance income tax ruling are outlined in Information Circular 70-6R3 dated December 30, 1996. Where the particular transactions are completed, the inquiry should be addressed to the relevant Tax Services Office. However, we are prepared to provide the following comments which are of a general nature and are not binding on the Agency.
Expenses which are eligible for the medical expense tax credit are limited to those described in subsection 118.2(2) of the Income Tax Act (the "Act") and Regulation 5700 of the Income Tax Regulations (the "Regulations"). With regards to many of these expenses, it is a question of fact whether an item qualifies.
As indicated in paragraph 36 and 39 respectively of Interpretation Bulletin IT-519R2 (Medical Expense and Disability Tax Credits and Attendant Care Expense Deduction), a copy of which is enclosed, amounts paid for or in respect of a spinal brace or support qualify as a medical expense by virtue of paragraph 118.2(2)(i) of the Act. With respect to the home traction device which you noted in your letter, it is not clear whether it is a spinal brace or support. However, based on the limited information provided with your letter, it is our view that the home traction device is not a spinal brace or support, and therefore does not fit any of the enumerated items in paragraph 118.2(2)(i) of the Act or Regulation 5700 of the Regulations.
With respect to the device called the Body Blade, we have reviewed the provisions for medical expenses generally and could not find any provision which could accommodate it as a medical expense for the purposes of the Act.
Should you wish further assistance with regards to the classification of these two items, we suggest that you contact the Client Services Division of the Saskatoon Tax Service Office.
We trust that our comments will be of assistance.
Yours truly,
John Oulton, CA
for Director
Business and Publications Division
Income Tax Rulings Directorate
Policy and Legislation Branch
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