12 March 2004 External T.I. 2004-0064411E5 - Qualified medical devices

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 the cost of exercise equipment qualify as a medical
		expense?

Position: No.

Reasons:	Exercise equipment is not included in the list of prescribed
		medical equipment and devices.

XXXXXXXXXX Bob Naufal, CMA
(613) 957-2744
March 12, 2004 2004-006441

Dear XXXXXXXXXX:

Re: Purchase of medical equipment

We are writing in response to your email of February 26, 2004 wherein you asked us whether the cost of exercise equipment qualifies as a medical expense for purpose of the medical expense tax credit. In the email you describe that you were diagnosed with high cholesterol and your medical doctor recommended a combination of diet, physiotherapy and cardiovascular exercises to treat your condition. As a result, you purchased a set of exercise equipment and a treadmill, as recommended by your doctor.

Our 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. Where the particular transactions are completed, the inquiry should be addressed to the local Tax Services Office. However, we are prepared to provide the following general comments.

Subsection 118.2(2) of the Income Tax Act (the "Act") provides a list of expenditures that qualify as medical expenses. Under paragraph 118.2(2)(m) of the Act, a payment in respect of prescribed medical devices and equipment may qualify as a medical expense if certain conditions are met. Generally, to qualify, the device or equipment must be prescribed by a medical practitioner, included in the list of qualifying medical devices or equipment described in section 5700 of the Income Tax Regulations (the "Regulations"), and meet such conditions as are applicable to its use or as to the reason for its acquisition. A medical practitioner is generally a person who is authorized to practise as such pursuant to the laws of the jurisdiction where the services are provided. Appendix A of Interpretation Bulletin, IT-519R2, Medical Expense and Disability Tax Credits and Attendant Care Expense Deduction contains the list of prescribed medical devices and equipment that qualify for this purpose.

Since the exercise equipment and treadmill are not listed in section 5700 of the Regulations or any other provision in subsection 118.2(2) of the Act, the costs associated with acquiring such equipment would not qualify as a medical expense.

Please note that the role of the Canada Revenue Agency is to administer and enforce the Act as passed by Parliament. Tax policy and amendments to the Act are the responsibility of the Department of Finance. Should you wish to pursue your concern further, you may contact the Tax Policy Branch of the Department of Finance by writing to L'Esplanade Laurier, 140 O'Connor Street, Ottawa ON, K1A 0L5.

We trust our comments will be of some assistance. Please contact us if you have any questions concerning our response.

Yours truly,

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