15 January 2003 External T.I. 2002-0174805 - MEDICAL EXPENSE TAX CREDIT

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: Can a full-time resident of a nursing home include, in his or her qualifying medical expenses, an amount paid for attendant care not provided by the nursing home?

Position: Yes

Reasons: Paragraph 118.2(2)(b) includes an amount paid for the full-time care in a nursing home of the patient. Full-time care in a nursing home may include attendant care that is not provided by the nursing home.

XXXXXXXXXX 2002-017480
Daryl Boychuk
January 15, 2002

Dear XXXXXXXXXX:

Re: Attendant Care for Full-time Resident of a Nursing Home

This is in reply to your letter of November 19, 2002, wherein you asked if attendant care expenses incurred by a person (hereafter referred to as the "taxpayer") would qualify as medical expenses eligible for the medical expense tax credit under subsection 118.2(2) of the Income Tax Act (the "Act").

More specifically, you asked us to assume that the taxpayer suffers from a severe and prolonged mental impairment. She is a full-time resident in a nursing home to which fees are paid in respect of her care. In addition, due to the severity of her disability, the taxpayer requires the services of a full-time attendant. The amount the taxpayer pays to the attendant is in addition to, and distinct from, the amount the taxpayer pays to the nursing home.

For the purpose of our response, we have assumed that the amount paid to the nursing home is a qualifying medical expense under paragraph 118.2(2)(b) of the Act.

Our Comments

Subject to our comments below, we are prepared to treat the amount paid by the taxpayer for attendant care while the taxpayer is a full-time resident of a nursing home as a medical expense under paragraph 118.2(2)(b) of the Act.

Please note that we are prepared to allow this expense only if the attendant is 18 years of age or older, the attendant is not the taxpayer's spouse and the taxpayer obtains a receipt evidencing the amount paid as remuneration for such care.

The foregoing comments represent our general views with respect to the subject matter. As indicated in paragraph 22 of Information Circular 70-6R5, 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 disclaimer in all instances in which we provide an opinion.

We trust the above comments are of assistance.

Yours truly,

Daryl Boychuk, LL.B
for Director
Business and Partnerships Division
Income Tax Rulings Directorate

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