22 July 2014 External T.I. 2014-0528671E5 - recumbent exercise bike

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 a recumbent exercise bike prescribed by a medical practitioner qualify as an eligible medical expense for purposes of the medical expense tax credit?

Position: No.

Reasons: A recumbent exercise bike is not included in subsection 118.2(2) of the Income Tax Act and it is not prescribed under section 5700 of the Income Tax Regulations.

XXXXXXXXXX
2014-052867
N. Shea-Farrow

July 22, 2014

Dear XXXXXXXXXX:

Re: Recumbent Exercise Bike

We are writing in response to your letter, which was forwarded to us on April 22, 2014, by the XXXXXXXXXX Tax Services Office, asking whether a recumbent exercise bike is an eligible medical expense for purposes of the medical expense tax credit (METC). You explained that you XXXXXXXXXX and have an active Disability Tax Credit Certificate (T2201) on file with the Canada Revenue Agency. Your physician believes that the use of the bike will provide physical rehabilitative benefits for the permanent disability that you have and he has prescribed one for you.

Our Comments

This technical interpretation provides general comments about the provisions of the Income Tax Act and related legislation (where referenced).  It does not confirm the income tax treatment of a particular situation involving a specific taxpayer but is intended to assist you in making that determination.  The income tax treatment of particular transactions proposed by a specific taxpayer will only be confirmed by this Directorate in the context of an advance income tax ruling request submitted in the manner set out in Information Circular IC 70-6R5, Advance Income Tax Rulings.

Medical expenses that are eligible for the medical expense tax credit ("METC") are limited to those described in subsection 118.2(2) of the Act. If a particular expenditure is not described as an eligible medical expense in subsection 118.2(2), or if the conditions under which the expenditure would qualify are not met, the expenditure does not qualify for purposes of the METC, even though the expenditure may have been incurred for medical reasons.

A medical device or equipment that is not listed elsewhere in subsection 118.2(2) of the Act may qualify as a medical expense under paragraph 118.2(2)(m) of the Act if it is prescribed under section 5700 of the Income Tax Regulations (the "Regulations"). The particular medical device must be for use by the patient, be prescribed by a medical practitioner and meet such conditions as are prescribed to its use or as to the reason for its acquisition.

Although your medical practitioner issued a prescription for the recumbent exercise bike, it is not listed under subsection 118.2(2) of the Act and it is not a device or equipment prescribed under section 5700 of the Regulations. We are therefore of the view that the cost of a recumbent exercise bike does not qualify as a medical expense for the purposes of the METC. Additional information on medical devices and equipment for the purpose of the METC can be found in paragraphs 1.118 to 1.122 of Income Tax Folio S1-F1-C1, Medical Expense Tax Credit, available on the Canada Revenue Agency website.

We trust our comments will be of assistance.

Yours truly,

Pamela Burnley, CPA, CA
Tax Credits and Ministerial Issues
Business and Employment Division
Income Tax Rulings Directorate