7 May 1998 External T.I. 9809045 - MED. EXP. - ALLERGY PATIENT REPLACING CARPET.

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 a patient suffering from allergies can include the cost of replacing carpeting with tile and hardwood flooring as a "medical expense."

Position:

No.

Reasons:

Only paragraph 118.2(2)(l.2) allows renovation expenses as a medical expense. This paragraph is restricted to a patient with a mobility impairment.

XXXXXXXXXX 	J. Gibbons
		5-980904

May 7, 1998

Dear XXXXXXXXXX:

We are replying to your letter of April 2, 1998, in which you inquire whether the cost of replacing carpet with solid flooring qualifies as an eligible medical expense. In your letter, you indicate that these renovations are required because your wife is allergic to a variety of airborne materials.

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.

Subsection 118.2(2) of the Income Tax Act (the "Act") describes "medical expenses" for purposes of the medical expense tax credit under subsection 118.2(1) of the Act. In this regard, reasonable expenses relating to renovations or alterations to a building qualify under paragraph 118.2(2)(l.2) of the Act if the renovations or alterations enable a patient, who lacks normal physical development or has a severe and prolonged mobility impairment, to gain access to, or to be mobile or functional within, a dwelling. Accordingly, the cost of building renovations for an allergy patient will not likely qualify under this provision since allergies do not generally cause a lack of normal physical development or a severe or prolonged physical impairment. In addition, the replacement of carpeting with tile or hardwood flooring is not considered a renovation which enhances mobility in the context of paragraph 118.2(2)(l.2) of the Act. Therefore, since there is no other provision by which renovation costs may be claimed as a medical expense, the cost of replacing carpeting with tile or hardwood flooring will not qualify as a medical expense for an allergy patient or any other type of patient.

We trust that these comments will be of assistance.

Yours truly,

P. Spice
for Director
Business and Publications Division
Income Tax Rulings and
Interpretations Directorate
Policy and Legislation Branch

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