9 May 1997 External T.I. 9703815 - 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.

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.

		970381
XXXXXXXXXX	M. Eisner

May 9, 1997

Dear XXXXXXXXXX:

Re: Medical Expense and Disability Tax Credit

This is in reply to your letter received by our office on February 11, 1997, concerning the above-noted subject.

You have indicated that your son has cystic fibrosis who requires chest percussions and postural drainage to drain mucous which accumulates in his lungs. At the request of his lung specialist, you propose to hire and train a high school student to carry out those procedures. You have asked whether the amounts paid to the student care-giver qualify as a medical expense under paragraph 118.2(2)(a) of the Income Tax Act (the Act).

In relation to paragraph 118.2(2)(g) of the Act, you have asked about reasonable expenses incurred for the use of a vehicle.

Our Comments

In order to qualify as medical expenses under paragraph 118.2(2)(a) of the Act, amounts must be paid to a medical practitioner, dentist or nurse, or to a hospital (public or licensed private) in respect of medical or dental services. Unfortunately, amounts paid to the student in the circumstances you describe would not qualify under that provision. However, consideration may be given as to whether the amounts paid for part-time attendant care would qualify as a medical expense under paragraph 118.2(2)(b.1) of the Act. In this regard, the various conditions that must be met are described on the enclosed copy of page 32 of the 1996 General Income tax Guide. The student care-giver must be 18 years of age or older, and the patient must be eligible to claim the disability amount. We have enclosed the pamphlet entitled "Tax Information for People With Disabilities," which discusses the disability amount.

We have also enclosed a copy of paragraphs 34, 35, and 37 of Interpretation Bulletin IT-519R "Medical Expense and Disability Tax Credits and Attendant Care Expense Deduction," which outline the Department's general position on expenses incurred for the use of a vehicle. Such expenses must be reasonable in the circumstances. Usually, vehicle expenses are limited to fuel costs. However, where frequent or extensive use is made of the vehicle, other operating costs, such as oil, license, and insurance can be claimed. The operating costs do not include capital cost allowance or interest. Amounts claimed as eligible medical costs in respect of vehicle expenses must be supported by receipts.

If you require further assistance, you should contact your local tax services office.

We trust our comments will be of assistance to you.

Yours truly,

John F. Oulton
Business and Publications Division
Income Tax Rulings and
Interpretations Directorate
Policy and Legislation Branch