26 June 1995 External T.I. 9507215 - MEDICAL EXPENSE CREDIT - HOT TUBS

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.

Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the Department.

Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle du ministère.

Principal Issues:

	whether the cost of a spa can qualify for purposes of 	the medical expense credit

Position TAKEN:

no. Whirlpool or similar treatments prescribed by a 	physician may if the cost of the service (not the 	device) is paid to a medical practitioner, dentist or 	nurse or a public or licensed private hospital and is in 	respect of a medical service

Reasons FOR POSITION TAKEN:

See also attached memo to Edmonton Tax Services

		950721
XXXXXXXXXX	Sandra Short

Attention: XXXXXXXXXX

June 26, 1995

Dear Sirs:

Re: Section 118.2 of the Income Tax Act - Medical Expense Credit

This is in reply to your letter of March 7, 1995 which asks the following three questions:

1.Is the cost of a spa or hot tub deductible for purposes of the medical expense credit under any circumstances?

2.If a spa is deductible for medical reasons, then what are the criteria for the deduction, and what documentation is required? and

3.If spa brands must be approved by Revenue Canada in order to be deductible for tax purposes, how does our manufacturer apply for approval?

The cost of a spa or hot tub does not qualify as a medical expense for purposes of the medical expense credit. In order for an expense to qualify as a medical expense for purposes of the medical expense credit, it must come within the provisions of subsection 118.2(2) of the Income Tax Act (the Act) or section 5700 of the Income Tax Regulations. The cost of a device or equipment may qualify as a medical expense only if it meets all of the criteria of paragraph 118.2(2)(m) of the Act. One of the criteria set out in this paragraph is that the device or equipment be "prescribed" under section 5700 of the Income Tax Regulations. As a hot tub, whirlpool, spa or its equivalent is not listed in section 5700 of the Regulations as a medical device or equipment, the cost of purchasing such a unit does not qualify as a medical expense.

Whirlpool or similar treatments prescribed by a physician may be deductible for income tax purposes if the cost of the service (not the device) is paid to a medical practitioner, dentist or nurse or a public or licensed private hospital and is in respect of a medical service.

We trust our comments will be of assistance to you.

Yours truly,

J.A. Szeszycki
for Director
Business and General Division
Income Tax Rulings and
Interpretations Directorate
Policy and Legislation Branch

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