3 October 1997 External T.I. 9722745 - MEDICAL - ELECTRICITY FOR OXYGEN MACHINE AND LIFT CHAIR

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:

medical expense - lift chair and electricity to operate an oxygen machine

Position:

not eligible

Reasons:

neither expenditure fits the descriptions in 118.2(2): a lift chair is a type of recliner and as such could not fit the description of a wheelchair. The rationale for allowing the cost of electricity and water to operate a dialysis machine is that 118.2(2)(i) permits expenses "for or in respect of ..." whereas the oxygen and oxygen machine are allowed under 118.2(2)(k) which uses the expression "for". - The cost of electricity, repairs, etc. was based on the fact that "in respect of" includes more than just the purchase.

A. Humenuk
XXXXXXXXXX 972274

October 3, 1997

Dear XXXXXXXXXX:

Re: Medical Expense Tax Credit

We are replying to your letter of August 27, 1997 in which you ask whether the cost of a lifting chair and the cost of electricity to operate an oxygen machine are eligible medical expenses for the purpose of the medical expense tax credit.

It is our understanding that a lifting chair, or lift chair as it is also called, is a recliner specially designed to permit a patient to manoeuvre his or her position in the chair by means of a remote control device. A lift chair allows a patient who is otherwise unable to do so to manoeuvre into a standing position from the chair. The chair is normally sold through medical supply stores.

Expenses which are eligible for the medical expense tax credit are limited to those described in subsection 118.2(2) of the Income Tax Act (the "Act"). If a particular expenditure is not described as an eligible medical expense in subsection 118.2(2) of the Act, or if the conditions under which the expenditure would qualify are not met, the expenditure does not qualify for purposes of the medical expense tax credit, even though the expenditure was incurred for medical reasons. The various categories of eligible medical expenses are described in paragraphs 21 to 66 of the enclosed Interpretation Bulletin IT-519R, Medical Expense and Disability Tax Credits and Attendant Care Expense Deduction.

Since neither a lift chair nor the cost of electricity to operate an oxygen machine are listed in subsection 118.2(2) of the Act, an amendment to the Act would be required in order to permit these expenditures to qualify as medical expenses for income tax purposes. Since amendments to the Act fall within the purview of the Department of Finance, you may wish to write to them at the following address:

Department of Finance
Tax Policy Branch
L'Esplanade Laurier
140 O'Connor Street
Ottawa, Ontario
K1A 0G5

We are returning your receipts and trust that our comments will be of assistance to you.

Yours truly,

C. Chouinard
for Director
Business and Publications Division
Income Tax Rulings and
Interpretations Directorate
Policy and Legislation Branch
Enclosure