11 June 1987 Income Tax Severed Letter 5-3280 - [Deductibility of Heat Pump as Medical Expense]

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.

N.R. Mitchell tel. (613) 957-2137

June 11, 1987

XXXX

Re: Deductibility of Heat Pump as Medical Expense ---------------------------------

This is in reply to your letter of April 24, 1987, concerning your wish to deduct from your income for tax purposes one-half of the cost (the "cooling half") of a heat pump which you installed in your home..

XXXX

We have considered the information set out in your letter and regret that we too must conclude that the expense in question is not eligible for deduction. In order to qualify as a medical expense for the purposes of the Income Tax Act (the "Act"), there must be some provision in the Act or the Income Tax Act Regulations (the "Regulations") that expressly authorizes the deduction of the particular type of expense. The relevant provisions of the legislation are paragraph 110(1)(c) of the Act and Regulation 3700. A heat pump, regardless of the beneficial affects which it may have for your medical condition, is not specifically provided for by the legislation and hence is not an eligible expense.

Regulation 5700(c) does allow the deduction of the cost of devices or equipment to assist breathing by individuals suffering from chronic respiratory ailments, but these items must be designed exclusively for use by individuals suffering from such ailments. A heat pump is not so designed. Furthermore, Regulation 5700(c) expressly excludes from eligibility an "air conditioner, humidifier, dehumidifier or air cleaner". In our view, a heat pump (particularly that aspect or portion of it which operates as an air cooler) has much in common with an air conditioner and would therefore fall outside the intended scope of the Regulations.

We note that the materials which accompanied your letter contained references to situations in which the cost of air conditioning or the cost of summer cooling by a heat pump was allowed as an eligible medical expense by this Department. It is our position that such an interpretation of the Act is not correct and should not be relied upon.

We regret that our response could not be more positive, but we would stress that this Department is obliged to administer the tax laws as legislated by Parliament. We have, however, taken the liberty of forwarding a copy of your letter to our Current Amendments Division for their consideration in referring this matter to the Department of Finance which as you may know, is responsible for initiating amendments to the Income Tax Act and Regulations.

We hope this letter will be of some assistance to you.

Yours truly,

for Director Small business and General Division Specialty Rulings Directorate Legislative and Intergovernmental Affairs branch

110(1)(c) Reg. 5700

NM/lb