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:
General information on common law spouses and medical expenses.
Position TAKEN:
General comments were provided.
Reasons FOR POSITION TAKEN:
The comments are consistent with the definition of spouse in the Income Tax Act and IT-519R.
951452
XXXXXXXXXX M. Eisner
September 13, 1995
Dear XXXXXXXXXX:
Re: Qualifying Medical Expenses
This is in reply to your letter of May 22, 1995 concerning the medical expense credit. We apologize for the delay in responding.
In your letter you have indicated that you live with your common law spouse who has recently contracted lung cancer. As medical facilities are not available locally (XXXXXXXXXX), he travelled to Vancouver where he was treated at the Vancouver General Hospital. In addition, there may be further travel expenses later on in the year that will be paid in connection with his condition. You have asked us for our comments concerning the eligibility of the travel expenses for the medical expense tax credit.
At the outset, we wish to mention that the determination of whether specific expenses, which have been paid by an individual, qualify for the medical expense tax credit can only be ascertained following a review of the relevant information and documentation including invoices. As such a review of an actual set of circumstances (including consideration of medical expenses for which receipts have not been retained), falls within the responsibility of tax services offices, you should contact the Vancouver Tax Services office if you require further assistance. In addition, you may wish to contact that office should you need further information concerning expenses that might be incurred in the future. We are, however, providing you with the following general comments.
The general requirements which must be satisfied before medical expenses of an individual qualify for the medical expense tax credit are set out in paragraphs 13 or 14 of Interpretation Bulletin IT-519R "Medical Expense and Disability Tax Credits" which has been enclosed. We also note that in relation to the circumstances where two individuals are living together in respect of a common law relationship but are not spouses pursuant to the comments below, such an individual's qualifying medical expenses would be restricted to those paid by the individual in respect of himself or herself assuming no dependants are involved (i.e., medical expenses paid by the individual in respect of his or her common law partner would not qualify).
Where two individuals are spouses for the purposes of the Income Tax Act, one of the individuals, as indicated in paragraph 17 of IT-519R, may use the medical expenses of the other spouse regardless of that spouse's income in a taxation year. In addition, a receipt in the name of one spouse is considered acceptable for a medical expense of either, and the amount of that expense may be used by either, as agreed between them.
As you may be aware, the definition of "spouse" in the Income Tax Act has been extended to include parties to a common-law relationship as long as certain criteria are met. For information in this regard, we refer you to the enclosed copy of page 8 from the 1994 General Income Tax Guide.
In certain circumstances, an individual, in respect of a patient (i.e., the individual, the individual's spouse, or a dependant), is entitled to treat reasonable transportation costs that are paid to a person engaged in the transportation business (e.g., bus, train, aeroplane) as a qualifying medical expense. However, where certain conditions are satisfied and such transportation is not readily available, reasonable expenses for the use of a private vehicle may qualify with respect to transportation between the locality where the patient lives and the place where medical services are provided to the patient. It would, of course, follow that where transportation from a person engaged in the business of transportation is available, private vehicle expenses, including parking at the medical centre or hospital, are not eligible for the medical expense tax credit.
However, notwithstanding that the patient uses a private vehicle, an individual may be eligible to include, as qualifying medical expenses, accommodation and meals expenses if the patient travels to a place that is at least 80 kilometres away from the locality where he or she dwells to obtain the medical services. In order for such expenses to qualify, substantially equivalent medical services must not have been available in the locality where the patient dwells, the patient must have taken a reasonably direct travel route, and it is reasonable in the circumstances for the patient to have travelled to that place for the medical services.
Where an amount, in respect of a patient, is paid by an individual to a person engaged in the business of providing transportation, the amount would be a qualifying medical expense as long the requirements in paragraph 35 of IT-519R have been satisfied. In addition, where an individual pays meals and accommodation expenses that are qualifying medical expenses pursuant to paragraph 37 of IT-519R and the individual travels home by train, for example, and then back to the place where he or she is receiving medical treatment over a lengthy period of time, the transportation expense (i.e., the cost of the train trip), would normally qualify as a qualifying medical expense.
We trust our comments will be of assistance to you.
Yours truly,
P.D. Fuoco
for Director
Business and General Division
Income Tax Rulings and
Interpretations Directorate
Policy and Legislation Branch
cc: Vancouver Tax Services office
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