6 March 2001 External T.I. 2001-0067985 - cost of medical expenses

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

Are PHSP premiums, diapers and cost for care in a nursing home Deductible Medical expenses?

Position TAKEN
YES

Reasons FOR POSITION TAKEN
Par 2, 24, 31, 50, 65 of IT 519R2

XXXXXXXXXX 2000-006798
C. Tremblay, CMA
March 6, 2001

Dear XXXXXXXXXX,

This is in reply to your letter of January 22, 2001, in which you request our advice as to whether certain medical expenses incurred by your nephew qualify for the medical expense tax credit.

You indicate that your nephew is claiming the Disability Tax Credit and that he is a resident and receiving full-time care in a nursing home and retains his health medical coverage with his former union by paying the premium. He is also required to pay for certain supplies. You have read Interpretation Bulletin IT-519R2 -Medical Expense and Disability Tax Credits and Attendant Care Expense Deduction, dated April 6, 1998.

Our Comments

The particular circumstances in your letter on which you have asked for our views is a factual situation. As explained in Information circular 70-6R4, it is not this Directorate's practice to comment on transactions involving specific taxpayers other than in the form of an advance income tax ruling. Since your situation involves completed and on-going transactions you should submit all relevant facts and documentation to the appropriate taxation services office for their views. However, we have considered your enquiry and provide the following comments which are of a general nature only.

In our view, and further to paragraph 24 of IT-519R2 , where a patient has a prolonged physical impairment, as defined in paragraph 2 of the IT, the cost of full-time care in a nursing home or institution that is specifically tailored for the care of the person suffering from the physical or mental impairment in question is deductible as a medical expense. Paragraph 50 of the IT also states that the cost of diapers, disposable briefs, etc... required by the patient because of incontinence caused by illness, injury or affliction are qualified medical expenses. Paragraph 65 of the IT discusses premiums paid to a Private Health Services Plan. Generally, those premiums may be included as a qualifying medical expense.

We trust that these comments will be of assistance.

Yours truly,

Steve Tevlin
for Director
Business and Partnerships Division
Income Tax Rulings Directorate
Policy and Legislation Branch

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