26 June 2001 External T.I. 2001-0088475 - 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: whether expenses are medical expenses

Position: -question of fact

Reasons: 118.2(2)

XXXXXXXXXX 	2001-008847
		Denise Dalphy, LL.B.
(613) 957-9231
June 26, 2001

Dear XXXXXXXXXX:

Re: Medical Expenses

We are writing in reply to your letter which was received by the Edmonton Tax Services Office on June 8, 2001 wherein you enquired whether the costs related to the purchase and installation of a particular walk-in bathtub/shower which would allow your daughter, who has multiple sclerosis, to take unassisted baths/showers is deductible for income tax purposes.

Written confirmation of the consequences inherent in particular transactions are given by this directorate only where the transactions are proposed and are the subject matter of an advance ruling request submitted in the manner set out in Information Circular 70-6R4. Where the particular transactions are partially completed or completed, the enquiry should be addressed to the relevant Tax Services Office. Notwithstanding the foregoing, we are providing the following comments.

Paragraphs 118.2(2)(l.2) and (m) of the Income Tax Act (the "Act"), among others, describes certain amounts that are considered to be "medical expenses" for the purpose of the Act and that may apply to your situation.

These paragraphs state that a "medical expense" is an amount paid:

"(l.2) for reasonable expenses relating to renovations or alterations to a dwelling of the patient who lacks normal physical development or has a severe and prolonged mobility impairment, to enable the patient to gain access to, or to be mobile or functional within, the dwelling;"

or

"(m) for any device or equipment for use by the patient that

(i) is of a prescribed kind,
(ii) is prescribed by a medical practitioner,
(iii) is not described in any other paragraph of this subsection, and
(iv) meets such conditions as are prescribed as to its use or the reason for its acquisition;

to the extent that the amount so paid does not exceed the amount, if any, prescribed in respect of the device or equipment;"

Paragraph 5700(g) of the Income Tax Regulations provides that an amount paid for the following will satisfy the first criterion in paragraph 118.2(2)(m):

"(g) mechanical device or equipment designed to be used to assist an individual to enter or leave a bathtub or shower or to get on or off a toilet;"

Of course, for an expense to qualify as a medical expense under paragraph 118.2(2)(m), it must satisfy the other criteria listed in the paragraph, including the requirement that the equipment must be prescribed by a medical practitioner.

Whether a particular expense satisfies the above provisions is a question of fact, and whether amounts paid for the shower/tub will qualify will depend on whether your daughter satisfies the above criteria in either of paragraphs (l.2) or (m). In the past, we gave an opinion that the cost of a custom-built shower (that had appropriate grab bars, a seat and doors that easily slide) would qualify as a medical expense of a person who has a severe and prolonged mobility impairment, provided the cost was reasonable. In that case, the total cost of the shower and a special toilet was $7,000 (in 1999). In 1998, we considered whether the cost of $5,000 to install a new bathroom (which included a raised toilet, easy moving taps, and a step-in safety shower and roll door to facilitate a wheelchair) on the first floor of the home of a person who could not climb the stairs to the only bathroom (which was on the second floor of her home) would qualify as a medical expense. We concluded that the cost would qualify under paragraph 118.2(2)(l.2) of the Act. Although the amount of $10,000 for a shower exceeds the amounts described above, we do not have enough information to determine whether or not the amount is reasonable. You may wish to compare the cost of other similar showers/tubs.

Finally, in order to claim an amount as a medical expense, there must be no reason that would preclude its deduction, which would happen, for example, if an insurance company reimburses you for the shower/tub.

The foregoing comments represent our general views with respect to the subject matter. As indicated in paragraph 22 of Information Circular 70-6R4, the above comments do not constitute an income tax ruling and accordingly are not binding on the Canada Customs and Revenue Agency. Our practice is to make this specific disclaimer in all instances in which we provide an opinion.

Yours truly,

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

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