16 November 2001 External T.I. 2001-0105755 - MEDICAL EXPENSE

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 CCRA.

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

Principal Issues: Does a hot tub qualify as an eligible medical expense?

Position: No

Reasons: not described in regulation 5700

XXXXXXXXXX 2001-010575
Shaun Harkin, CMA
November 16, 2001

Dear XXXXXXXXXX:

Re: Technical Interpretation Request: Medical Expense

This is in reply to your facsimile of October 12, 2001 wherein you ask whether the cost for a hot tub qualifies as a medical expense for purposes of the medical expense credit.

The cost of a hot tub does not qualify as a medical expense for purposes of the medical expense credit. In order for an expense to qualify as a medical expense for purposes of the medical expense credit, it must be described in specific provisions of subsection 118.2(2) of the Income Tax Act (the "Act") or prescribed by section 5700 of the Income Tax Regulations (the "Regulations"). The cost of a device or equipment may qualify as a medical expense only if it meets all of the criteria of paragraph 118.2(2)(m) of the Act. One of the criteria set out in this paragraph is that the device or equipment be prescribed under section 5700 of the Regulations. As a hot tub, whirlpool, spa or its equivalent is not listed in section 5700 of the Regulations as a medical device or equipment, the cost of purchasing such a unit does not qualify as a medical expense.

If a medical practitioner prescribes treatments in, for example, a hot tub or a whirlpool bath the cost of the treatment qualifies as a medical expense under paragraph 118.2(2)(a) of the Act. However, if a hot tub or whirlpool is purchased, the cost does not qualify as a medical expense since it is not prescribed in the Regulations.

We regret that our response could not be more favourable.

Yours truly,

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

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