17 June 1998 External T.I. 9813465 - MEDICAL EXPENSE - HOUSE REVOVATION

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 cost of a bathroom on the first floor qualifies as a medical expense where the taxpayer cannot climb stairs and the only existing bathroom is on the second floor.

Position: Yes, provided the taxpayer has a severe and prolonged mobility impairment.

Reasons: Paragraph 118.2(2)(l.2) was amended in 1991 to extend the availability of the benefit to persons who are not restricted to wheelchairs, as long as they have a severe and prolonged mobility impairment. The 1991 Budget Supplementary Information gives as example of mobility restriction, the restriction resulting from multiple sclerosis or cerebral palsy. Also, the Tax Court allowed the expenses in situation where taxpayers were not restricted to a wheelchair.

XXXXXXXXXX 981346

N. Mondou, M.Fisc.

June 17, 1998

Dear XXXXXXXXXX:

Re: Medical Expenses

This is in reply to your letter dated September 7, 1997, in which you requested our views as to the qualification, as a medical expense, of the cost of an addition to a house. We apologize for the delay in replying to your letter.

In the situation you describe, your mother was diagnosed with a severe case of rheumatoid arthritis, which makes it impossible for her to climb stairs. Her house has only one bathroom, which is located on the second floor. As she cannot access this bathroom because of her physical condition, she decided to have a full bathroom built on the first floor. This bathroom has a raised toilet, easy moving taps, a step-in safety shower and a roll door to facilitate a wheelchair, if this becomes a necessity in the future. The cost of this new bathroom is approximately $5,000 and was paid for by your father. You requested information about the claim for such renovation expenses for purposes of the medical tax credit under subsection 118.2(2) of the Income Tax Act ( the “Act”).

Paragraph 118.2(2)(l.2) of the Act provides that the amount paid for reasonable expenses relating to renovations or alterations to a dwelling of a 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, qualifies as a medical expense under the Act.

We understand from your description of the situation that your mother has a severe and prolonged mobility impairment as a result of her medical condition. In our view and on the basis of this understanding and the information provided, the cost of the new bathroom would qualify as a medical expense.

We trust that these comments are of assistance but caution you that they do not constitute an advance income tax ruling and, accordingly, are not binding on the Department.

Yours truly,

J. F. Oulton, CA
for Director
Business and Publications Division
Income Tax Rulings and
Interpretations Directorate
Policy and Legislation Branch
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