17 November 1997 External T.I. 9726045 - MEDICAL EXP.- MAKING NEW HOME WHEELCHAIR ACCESSIBLE

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 of making a new house wheelchair-accessible are tax deductible.

Position:

Some costs may be deductible under 118.2(2)(m). None are deductible under 118.2(2)(l.2)

Reasons:

Para. 118.2(2)(l.2) is intended for costs relating to renovations or alterations to a dwelling to make it wheel-chair accessible after it is first built.

J. Gibbons
XXXXXXXXXX 5-972604

November 17, 1997

Dear XXXXXXXXXX:

We are replying to your letter of September 25, 1997, in which you inquire whether the additional costs of making your new home wheelchair accessible, to accommodate your wife who has multiple sclerosis, would be deductible from tax. You indicate that the additional costs relate to making wider doors, wider hallways, and modifications to the kitchen and bathrooms.

Written confirmation of the tax implications inherent in particular transactions are given by this Directorate only where the transactions are proposed and are the subject matter of an advance ruling request submitted in the manner set out in Information Circular 70-6R3. The following comments are, therefore, of a general nature only.

Paragraph 118.2(2)(l.2) of the Income Tax Act (the "Act") provides that a medical expense of an individual is an amount paid for reasonable expenses relating to renovations or alterations to a dwelling of the patient who lacks normal physical development or has a severe and prolonged mobility impairment, to enable the patient to gain access to, or to be mobile or functional within, the dwelling. It is our view that the wording of that paragraph envisions costs relating to renovations or alterations to a dwelling to make it wheelchair-accessible after it is first built. Accordingly, no part of the construction costs of making a home wheelchair-accessible during its original construction would qualify for the medical expense tax credit under paragraph 118.2(2)(l.2) of the Act.

However, some of the additional costs of making your new home wheelchair-accessible may qualify as medical expenses under paragraph 118.2(2)(m) of the Act. Paragraph 118.2(2)(m) of the Act refers to any device or equipment for use by the patient that is of a prescribed kind, is prescribed by a medical practitioner, is not described in any other paragraph of subsection 118.2(2) of the Act, and meets such conditions as are prescribed as to its use or the reason for its acquisition. Section 5700 of the Income Tax Regulations (the "Regulations") prescribes the devices and equipment for purposes of paragraph 118.2(2)(m) of the Act. Paragraph 5700(g) of the Regulations refers to a mechanical device or equipment designed to be used to assist an individual to enter or leave a bathtub, or shower or to get on or off a toilet, and paragraph 5700(m) refers to a power operated lift or transportation equipment designed exclusively for use by, or for, a disabled individual to allow the individual access to different areas of a building. If the modifications to the bathrooms meet this description, they may qualify as medical expenses under paragraph 118.2(2)(m) of the Act, provided the other requirements of this provision are satisfied.

We are enclosing a copy of Interpretation Bulletin IT-519R regarding medical expenses for your information.

We trust that these comments will be of assistance.

Yours truly,

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

Encl.