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Principal Issues: [TaxInterpretations translation] Can an expenditure on a Theracycle 200 motorized stationary bicycle qualify for the medical expense tax credit under section 118.2 of the Income Tax Act?
Reasons: The Income Tax Act. See reasons below.
April 17, 2012
Subject: Medical Expense Tax credit
This is in response to your letter of March 20, 2012 in which you requested our comments about the “Theracycle 200” motorized stationary bicycle prescribed by your doctor to halt your loss of autonomy.
Unless otherwise indicated, all statutory references herein are to the provisions of the Income Tax Act.
In particular, you indicated that you are afflicted with XXXXXXXXXX causing a pronounced difficulty in walking. The Theracycle 200, designed for people with various medical conditions, including Parkinson's disease, muscular dystrophy and arthritis, helps to improve muscle tone, blood circulation and flexibility, as well as to reduce inflammation and muscle spasms. The Theracycle 200 contains a motor to help the person move their arms, legs and torso during exercise.
You wish to know if an expenditure made for a Theracycle 200 motorized stationary bicycle would qualify for the medical expense tax credit ("METC") under section 118.2.
Paragraph 118.2(2)(m) states that certain devices and equipment - as specified in Section 5700 of the Income Tax Regulations ("ITR") - may qualify for the METC. For an amount paid for a device or equipment to qualify under paragraph 118.2(2)(m), the device or equipment must meet the following conditions:
a) it is of a prescribed kind;
b) it is used by the patient as prescribed by a medical practitioner;
c) it is not described in any of the other paragraph of subsection 118.2(2);
d) it meets such conditions as are prescribed as to its use or the reason for its acquisition.
Paragraph 5700(i) of the ITR provides that an expenditure made for any “device that is exclusively designed to assist an individual in walking where the individual has a mobility impairment” will be an eligible expense under the METC. In our opinion, the Theracycle 200 motorized stationary bicycle is not a type of device contemplated by paragraph 5700(i).
The devices provided in paragraph 5700(i) are those designed to assist an individual with mobility impairments during walking, including canes, crutches and walkers. In addition, according to the information provided, it appears that the Theracycle 200 motorized stationary bicycle was not designed "exclusively" to assist with walking.
We hope that these comments are of assistance.
François Bordeleau, Advocate
Business and Trusts Section
Income Tax Rulings Directorate
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