29 May 1999 External T.I. 9909525 - 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.

Principal Issues: Whether the cost of a toilet and a shower ($7,000) qualify with respect to the medical expense credit (paragraph 118.2(2)(l.2) of the Act) where the individual (age of XXXXXXXXXX) has the use of only one arm and a serious balance problem. This medical condition resulted from a vehicle accident many years ago.

Position: Yes, to the extent that the costs are reasonable and do not relate to something other than the individual's medical condition.

Reasons: The facts provided to us indicate that the individual has a severe and prolonged mobility impairment and the costs result in the individual being more functional within the dwelling.

XXXXXXXXXX 990952
M. Eisner
May 29, 1999

Dear Sir:

Re: Medical Expenses

This is in reply to your letter of February 26, 1999, concerning the above-noted subject.

In your situation, your wife, who is now XXXXXXXXXX years of age, was severely injured in an automobile accident over XXXXXXXXXX years ago. As a result of the accident, she was rendered spastic down her left side and has a permanent balance problem. She also sustained other injuries. Her injuries precluded her from being employed as well as driving a vehicle. She currently uses a “quad” cane when she walks in the house during the day and a walker at night. She has virtually no use of her left arm and requires assistance in sitting down in a chair or getting up from a chair. Since XXXXXXXXXX, your wife has qualified for the disability tax credit described in paragraphs 5 to 9 of Interpretation Bulletin IT-519R2 “Medical Expense and Disability Tax Credits and Attendant Care Expense Deduction".

With age, her balance has deteriorated significantly and you are no longer able to assist her to enter or leave the bath tub (you are XXXXXXXXXX). In order to accommodate her special needs, the bath tub has been removed and a custom built shower has been installed in its place. The shower has appropriate grab bars, a seat and doors that easily slide. In addition, the toilet has been replaced with one that is designed for use by individuals who are handicapped. While a raised seat was used with respect to the old toilet, your wife felt that it was awkward to use in comparison to the new one which is more suited to her balance problem. Grab bars were used with respect to the old toilet and are being used with respect to the new toilet.

The costs you paid in respect of the new toilet and the shower totalled approximately $7,000. You have asked whether the costs are eligible expenses with respect to the medical expense credit.

Our Comments

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 ad prolonged mobility impairment, to enable the patient to gain access to, or to be mobile or functional, within the dwelling. This is explained in paragraph 55 of JT-519R2.

The extent that the costs are reasonable and have been incurred by you in respect of a patient described in 118.2(2)(l.2) of the Act in order to permit the patient to be more functional or mobile within a dwelling, involves a question of fact. It is our view, based on your description of the facts outlined above, that the costs paid in respect of the shower and the new toilet would qualify as eligible medical expenses. The calculation of the medical expense tax credit is explained in paragraph 11 of IT519R2.

We trust that our 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