5 December 2003 External T.I. 2003-0041715 - MEDICAL EXPENSES-RENOVATIONS

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:

Would the cost of modifying a bathroom by installing a new bathtub to allow a person who is permanently disabled unassisted access to the bathtub qualify as a medical expense?

Position:

Reasonable costs relating to renovations of the bathroom to allow a disabled individual access to independent bathing within a dwelling to qualify as medical expenses.

Reasons: 118.2(2)(l.2)

Lena Holloway, CA
XXXXXXXXXX (613) 957-2104
2003-004171
December 5, 2003

Dear XXXXXXXXXX:

Re: Medical Expenses - Bathroom Modifications

We are writing in response to your letter dated September 27, 2003 wherein you asked us if the cost of renovating your bathroom and installing a special bathtub to allow your spouse to take unassisted baths/showers qualifies for the medical expense tax credit.

Your letter explained that modifications to your bathroom were required to allow your disabled spouse unassisted access to the bathtub as you are no longer able to give her the assistance she needs to safely enter or leave the bathtub. In particular, the costs included removing the existing bathtub and replacing it with a new one designed to meet the specific needs of a disabled person (special seating and devices to assist the disabled person to enter or leave the bathtub). Your letter also noted that your spouse is entitled to a disability tax credit under the Income Tax Act (the "Act").

Our Comments

Section 118.2 of 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. A person may claim his or her own medical expenses or those of a spouse or dependant.

Qualifying medical expenses include reasonable costs relating to renovations or alterations to a dwelling of an individual who lacks normal physical development or has a severe and prolonged mobility impairment to enable the individual to gain access to, or to be mobile or functional within, the dwelling. Generally, an individual would be considered to have a severe mobility impairment where that individual's ability to perform the basic activities of daily living, such as walking or dressing oneself, is markedly restricted (e.g. the individual is confined to a wheelchair or has another immobilizing impairment). An impairment is prolonged where it has lasted or can reasonably be expected to last for a continuous period of more than 12 months.

Accordingly, to qualify for the medical expense tax credit:

(a) your spouse must have a severe and prolonged mobility impairment (her ability to perform the basic activities of daily living, such as walking or dressing herself, is markedly restricted); and

(b) the costs relating to the renovations of your bathroom were reasonable and incurred to facilitate access to the use of the bathtub by your spouse.

If the conditions set in (a) and (b) above are met, we would consider the installation of the tub, in this particular case, to be an alteration or renovation of your dwelling, the cost of which would qualify for the medical expense tax credit.

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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