12 February 2004 External T.I. 2004-0060231E5 - 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.

Principal Issues:	Does an amount paid to replace a roof a qualifying
		medical expense?

Position:	While the determination is a question of fact, in the
		situation described, the amount paid does not qualify.

Reasons: Did not meet the criteria of paragraph 118.2(2)(l.2).

Bob Naufal, CMA
XXXXXXXXXX (613) 957-2744
2004-006023
February 12, 2004

Dear XXXXXXXXXX:

Medical expenses

We are writing in response to your letter dated January 30, 2004, wherein you asked us if an amount paid to replace the roof on your house is an eligible medical expense. In the letter, you describe that the roof replacement was recommended by officers from the XXXXXXXXXX in order to minimize the health and medical dangers associated with bats inhabiting the attic area of your home.

Our Comments

The particular situation outlined in your letter relates to a completed transaction. Where the situation involves a completed transaction, you should submit all relevant facts and documentation to the appropriate Tax Services Office for their views. Notwithstanding the foregoing, we are prepared to provide you the following general 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.

Qualifying medical expenses, as defined in subsection 118.2(2) of the Act, include reasonable expenses 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 considered to be "prolonged" if it has lasted, or may reasonably be expected to last, for a continuous period of at least 12 months.

In your letter, there is no indication that the roof replacement was required to enable an individual who lacks normal physical development or an individual with a severe and prolonged mobility impairment to gain access to or be functional within your home. In addition there are no further provisions in subsection 118.2(2) of the Act that would otherwise qualify an amount paid to replace the roof as a medical expense. Accordingly, it is our view that the amount paid to replace the roof is not a qualifying medical expense.

While we regret that our comments could not be more favourable, we trust they will be of some assistance.

Yours truly,

Wayne Antle, CGA
for Director
Business and Partnerships Division
Income Tax Rulings Directorate