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 additional costs incurred during construction of the home to make it wheelchair accessible are qualifying medical expenses on the basis that they are expenses "relating to renovations or alterations to a dwelling" for the purposes of paragraph 118.2(2)(l.2) of the Act).
Position:
No
Reasons:
The wording presupposes that a dwelling is in existence
June 20, 1996
Surrey Taxation Centre HEADQUARTERS
Client Services, 541-7 M. Eisner
Sigrid Hagglund (613) 957-8953
961490
Medical Expense Tax Credit
This is in reply to your memorandum of April 26, 1996 in which you asked us for our comments on the above-noted subject.
In the circumstances of your situation, an individual, who uses a wheelchair, is paralysed from the chest down. As the residence of the individual's parents where she lived was too small for a suitable renovation, her parents proceeded to have a new two-storey home constructed. The home included a suite for the individual in the basement and a number of other features to make it handicapped accessible. The home was completed in 1996.
You asked whether the additional costs incurred during the construction of the home to make it wheelchair accessible, are qualifying medical expenses under the Income Tax Act (the Act).
Paragraph 118.2(2)(l.2) of the Act refers to "renovations or alterations to a dwelling." In the type of situation you have described, it is our view that no part of the construction cost of making a new home handicapped accessible during its original construction would qualify for the medical expense tax credit under that paragraph. In interpreting this provision, it is our view that the wording envisions costs relating to renovations or alterations to a dwelling to make it so accessible after it is first built.
If you require further technical assistance, we would be pleased to provide our views.
John F. Oulton
Section Chief
Business, Property and Personal Section
Business and Publications Division
Income Tax Rulings and
Interpretations Directorate
Policy and Legislation Branch
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