6 November 1998 Internal T.I. E9827077 - MED. EXP. OF MOVING TO A NEW LOCATION.

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 moving expenses of an individual who has a mobility impairment qualifies as a medical expense where the purpose of the individual’s move is related to her hypersensitivity to chemicals.

Position: No.

Reasons: Although XXXXXXXXXX , has a mobility impairment, her move to a new location was not undertaken to improve her mobility or access, but rather it was carried out for purpose of alleviating the suffering caused by her chemical hypersensitivity. Accordingly, the moving expenses incurred by her do not qualify under paragraph 118.2(2)(l.5).

		November 6, 1998

	Ottawa Tax Services Office	HEADQUARTERS
	PRP Section	J. Gibbons
(613) 957-8953
	Attention: Michel Pilon
		7-982707

XXXXXXXXXX

This is in response to your memorandum of October 14, 1998, in which you enquire whether an amount paid for moving expenses incurred by the above-named taxpayer, XXXXXXXXXX, qualifies as a medical expense under paragraph 118.2(2)(l.5) of the Income Tax Act. The taxpayer claims that she had to move to a different location because her hypersensitivity to chemicals made it impossible for her to “function” in her previous home due to the presence of methanol fumes in the basement. XXXXXXXXXX qualifies for the disability credit because of a mobility impairment and a mental problem.

To be deductible under paragraph 118.2(2)(l.5), moving expenses must be incurred for a patient who lacks normal physical development or who has a severe and prolonged mobility impairment. Further, the expenses must be incurred for the purpose of the patient’s move to a dwelling that is more accessible by the patient or in which the patient is more mobile or functional. Since the term “functional” is not defined in the Act, its ordinary meaning must be used. According to Merriam Webster’s Collegiate Dictionary, Tenth Edition paragraph, one of the meanings of the term “functional” is “performing or able to perform a function,” with “function” generally referring to any bodily action. This meaning is consistent with the context of paragraph 118.2(2)(l.5), in that it relates to the purpose of the moving expenses, i.e., to improve the mobility or access of patients. Generally, the type of patients who would move for this purpose lack normal physical development or have a severe and prolonged mobility impairment. Although XXXXXXXXXX, has a mobility impairment, her move to a new location was not undertaken to improve her mobility or access, but rather it was carried out for purpose of alleviating the suffering caused by her chemical hypersensitivity. Accordingly, the moving expenses incurred by her do not qualify under paragraph 118.2(2)(l.5).

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