14 February 1991 Ruling 903521 F - Medical Expenses

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.

Dear Sirs:

Re: Medical Expenses - Paragraph 118.2(2)(l.2) of the Act

This is in reply to your letter of December 5, 1990 concerning the  application of paragraph 118.2(2)(l.2) of the Act to expenses incurred during the construction of a new dwelling.

This provision allows amounts paid

"... for reasonable expenses relating to the modification of a dwelling. . . "

to be deducted as a medical expense for certain patients.  You mention in your letter that the use of the word "modification" seems to imply that while the expense of modifying an existing dwelling may be eligible to qualify as a medical expense, the same or similar expense incurred in the construction of a new dwelling would not qualify.

In your view, the interpretation of the term "modification" should  include expenses incurred in the construction of a new dwelling where those expenses can be considered to be the same or similar as expenses of modifying an existing dwelling to enable the patient to be mobile and functional within the dwelling.

Our Comments

In our view, the term "modification of a dwelling" presupposes that the dwelling exists and its interpretation can not be extended in the manner you suggest without an amendment to the Income Tax Act. Consequently we have forwarded a copy of your letter and our reply to officials of the Department of Finance for their consideration.

We regret that our reply cannot be more favourable.

Yours truly,

for DirectorBusiness and General DivisionRulings DirectorateLegislative and Intergovernmental Affairs Branch

c.c. Mr. R. D'Aurelio Director Current Amendments Division