31 May 1999 External T.I. 9911955 - 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: If an individual moves from one city to another city as a result of a mental impairment (Alzhemer’s Disease) so that her family can provide her with the personal care she needs, will the moving expenses qualify as eligible medical expenses under subsection 118.2(2)(l.5) of the Income Tax Act.

Position: No

Reasons: There is no reference to someone who has such an impairment.

XXXXXXXXXX 991195
M. Eisner
May 29, 1999

Dear Sirs:

Re: Medical Expenses - Paragraph 118.2(2)(l.5) of the Income Tax Act

We are replying to your letter of March 11, 1999 which was addressed to the Calgary Tax Services Office and concerns the above-noted subject.

You have referred to a situation where it has become necessary for a person, who has a severe mental impairment (Alzheimer’s Disease), to move from Montreal to Calgary in order to be close to her family who would provide her with the personal care she needs. You have asked whether the moving expenses could be claimed under paragraph 118.2(2)(l.5) of the Income Tax Act (the “Act”).

Our Comments

The specific wording of paragraph 118.2(2)(l.5) of the Act generally includes reasonable moving expenses (up to a maximum of $2,000) to move an individual, who lacks normal physical development or has a severe and prolonged mobility impairment, to housing that is more accessible by the individual or in which the individual is more mobile or functional. For the purposes of paragraph 118.2(2)(l.5) of the Act, moving expenses are defined by subsection 62(3) of the Act, but do not include any expense deducted under section 62 for any year.

On the basis of the information provided to us, it seems apparent that the individual will move as a result of a mental impairment so that her family will be able to provide her with the personal care she needs. In such circumstances, it is unfortunate that no part of the moving expenses can qualify as eligible moving expenses under paragraph 118.2(2)(l.5) of the Act, as there is no reference in that provision to someone who moves as a result of a mental impairment. We are not aware of any other provision under which the moving expenses could qualify as an eligible medical expense.

In order for the moving costs to qualify as eligible medical expenses, an amendment to the Act would be necessary. Should you wish to pursue this matter, you should contact the Department of Finance whose responsibilities include considering amendments to the Act. The address of that Department is 140 O’Connor Street, Ottawa, Ontario, K1A 0G5.

We regret that we could not give you a favourable reply.

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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