19 December 2002 External T.I. 2002-0176965 - MEDICAL EXPENSES-wheelchair

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: Whether the cost of a wheelchair lift & the expenses related to the installation thereof qualify for the medical expense credit.

Position: The cost of the lift would qualify provided that it is prescribed by a medical practitioner. The cost relating to the renovations to the dwelling to install the lift would qualify as a medical expense.

Reasons: Expenses appear to meet the requirements set out in paragraphs 118.2(2)(l.2) & 118.2(2)(m) of the Act & regulation 5700.

XXXXXXXXXX 2002-017696
Lena Holloway, CA
December 19, 2002

Dear XXXXXXXXXX:

Re: Wheelchair Lift and Related Installation Expenses

We are writing in reply to your letter of December 3, 2002, wherein you inquired if the cost of a wheelchair lift and the costs related to the renovations of your home to allow its installation are qualifying medical expenses for income tax purposes.

In your letter, you stated that as a result of illness, you are disabled and require the use of a wheelchair. Moreover, while you are you are currently confined to a continuing health care facility, you are considering having a wheelchair lift installed outside your house so that you can go home from time to time.

Comments

Written confirmation of the tax consequences that apply to a particular fact situation is given by this directorate only in the context of an advance ruling request submitted in the manner set out in Information Circular 70-6R5. Notwithstanding the foregoing, we are prepared to provide the following comments.

Section 118.2 of the Income Tax Act (the "Act") provides rules for determining the amount that may be claimed, as a tax credit, in respect of medical expenses. The credit applies to qualifying medical expenses, in excess of defined limits, incurred in any 12-month period ending in the taxation year.

Included in the list of qualifying medical expenses is an amount paid for a power-operated lift that is prescribed by a medical practitioner, for use by a disabled individual, to access different areas of a building. Qualifying medical expenses also include reasonable expenses relating to renovations or alterations to a dwelling of an individual who has a severe and prolonged mobility impairment to allow the individual to gain access to, or to be mobile or functional within, the dwelling.

On the basis of the information in your letter, it appears that the cost of the lift would qualify as a medical expense, provided that the lift is prescribed by a medical practitioner. Moreover, the cost relating to the renovations to your dwelling to install the lift would qualify as a medical expense on the basis that the renovations would allow you to gain access to your dwelling.

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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