9 November 2009 Internal T.I. 2009-0326721I7 - Renovations for wheelchair access at parent's home

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: Whether renovations carried out by the patient's parents out their home, where the patient has her own rented apartment in another city, would qualify under paragraph 118.2(2)(l.2) of the Act.

Position: It is a question of fact based on the determination of whether the patient is a "dependant" of the parents and whether the parent's home is a "dwelling of the patient".

Reasons: Based on the ordinary interpretation of the particular provision.

								November 9, 2009

		HEADQUARTERS				HEADQUARTERS
		Benefit Programs Directorate		Income Tax Rulings
		Disability Programs	  		Directorate
		Attention:  Steven Sleigh		James Gibbons, CGA
(819) 458-3538

								2009-032672

Medical Expenses Tax Credit - Renovations for Wheelchair Access

This is in response to your email dated June 9, 2009, concerning an enquiry you received during an Outreach conference. A parent with a disabled daughter (the "Taxpayer") explained to you that he incurred expenses to improve access at his home for his daughter's wheelchair and asked whether they would be eligible for the medical expense tax credit ("METC") under subsection 118.2(2) of the Income Tax Act (the "Act"). The daughter has her own apartment in XXXXXXXXXX but frequently visits the Taxpayer and his wife at their home in XXXXXXXXXX . The daughter receives payments from the Ontario Disability Supports Program ("ODSP"), which consists of an amount for basic needs (i.e., food, clothing and other necessary personal items) and a shelter allowance, but she also receives some assistance from the parents.

Meaning of "dependant" of an individual

There are several provisions under the list of medical expenses in subsection 118.2(2) that might be applicable when a home is renovated to make it more accessible by wheelchair. Paragraph 118.2(2)(l.2) is aimed at general renovation expenses while paragraph 5700(f), (g) and (m) of the Income Tax Regulations describe specific medical devices for persons having mobility impairments. However, in order for a parent claim medical expenses in respect of an adult child, the child would have to qualify as a "dependant" of the parent within the meaning of subsection 118(6) of the Act. According to this provision:

"For the purposes of paragraphs (d) and (e) of the description of B in subsection (1) and paragraph (4)(e), "dependant" of an individual for a taxation year means a person who at any time in the year is dependent on the individual for support and is

(a) the child or grandchild of the individual or of the individual's spouse or common-law partner; or
(b) the parent, grandparent, brother, sister, uncle, aunt, niece or nephew, if resident in Canada at any time in the year, of the individual or of the individual's spouse or common-law partner."

Whether or not a person is dependent upon another within the meaning of this term in subsection 118(6) of the Act is a question of fact. In general terms, support involves the provision of the basic necessities of life such as food, shelter and clothing. This support may be given voluntarily or pursuant to a legal commitment. In the present circumstances, since the Taxpayer's daughter receives ODSP payments, it would have to be shown that this income was insufficient to meet her basic needs and that she had to rely on the support provided by the Taxpayer. In this regard, consideration would also be given to the amount of support provided by the Taxpayer.

Renovation expenses

Paragraph 118.2(2)(l.2) provides as follows:

"(l.2) [Home renovations or alterations for disabled person] - for reasonable expenses relating to renovations or alterations to a dwelling of the patient who lacks normal physical development or has a severe and prolonged mobility impairment, to enable the patient to gain access to, or to be mobile or functional within, the dwelling, provided that such expenses

(i) are not of a type that would typically be expected to increase the value of the dwelling, and
(ii) are of a type that would not normally be incurred by persons who have normal physical development or who do not have a severe and prolonged mobility impairment..."

It is noted that the above provision was modified effective for expenses incurred after February 22, 2005, to deny otherwise allowable renovation expenses if they increased the value of a home or if they were of the type that would be incurred by persons do not have a mobility impairment or who do not lack normal physical development. These changes do not affect renovation expenses such as the cost of installing entrance and exit ramps, widening doorways, lowering shelves, modifying kitchen cabinets and moving electrical outlets, but are meant to prevent claims for other expenses such as hardwood flooring and hot tubs.

Assuming that the daughter qualifies as a dependant of the Taxpayer, the other issue related to paragraph 118.2(2)(l.2) is whether the parent's home qualifies as "a dwelling of the patient." Since a dwelling is not defined in the Act, the ordinary meaning of this term applies. Merriam-Webster's online dictionary defines a dwelling as "a shelter (as a house) in which people live." While the full expression "dwelling of the patient" signifies that the patient must be able to call the particular dwelling her own, this does not imply that there is a requirement for legal ownership. For example, we have previously accepted that a rented apartment could qualify as a dwelling of the patient. Ultimately, it is a question of fact whether a dwelling is a dwelling of the patient. In this regard, we would be inclined to conclude that generally a parent's home cannot be considered a dwelling of the patient if the patient has his or her own rented apartment that the patient uses year-round.

Medical devices

Other medical expenses for mobility-impaired individuals are provided in paragraph 118.2(2)(m) of the Act and section 5700 of the Regulations. Paragraph 118.2(2)(m) provides as follows:

"for any device or equipment for use by the patient that

(i) is of a prescribed kind,
(ii) is prescribed by a medical practitioner,
(iii) is not described in any other paragraph of this subsection, and
(iv) meets such conditions as are prescribed as to its use or the reason for its acquisition..."

Section 5700 of the Regulations prescribes several devices that may be installed within a home to assist someone who has a mobility impairment, which include:

"(f) power-operated guided chair installation, for an individual, that is designed to be used solely in a stairway;"

"(g) mechanical device or equipment designed to be used to assist an individual to enter or leave a bathtub or shower or to get on or off a toilet;" and

"(m) power-operated lift or transportation equipment designed exclusively for use by, or for, a disabled individual to allow the individual access to different areas of a building or to assist the individual to gain access to a vehicle or to place the individual's wheelchair in or on a vehicle."

In regard to this particular case, we not have sufficient information to determine whether the daughter is a dependant of the Taxpayer.

If you have any questions concerning this matter, please feel free to contact me at the above-noted phone number.

G. Moore
for Director
Business and Partnerships Division
Income Tax Rulings Directorate
Legislative Policy and Regulatory Affairs Branch