24 January 2012 External T.I. 2011-0429441E5 - METC: seamless T-shirt under spinal brace

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.

Principal Issues: Whether the cost of a seamless T-shirt to be worn under a thoraco-lumbo-sacral orthosis (TLSO) would qualify as a medical expense under the medical expense tax credit (METC).

Position: No.

Reasons: An amount paid for a seamless T-shirt is not considered to be paid "in respect of" a spinal brace, since a seamless T-shirt is not a requirement.

XXXXXXXXXX
						2011-042944

January 24, 2012

Dear XXXXXXXXXX :

Re: Medical Expense Tax Credit for Torso Body Sock

This is in response to your email of November 28, 2011.

You are asking whether the cost of a Torso Body Sock (TBS) that is used as a T-shirt to wear under a Thoraco-Lumbo-Sacral Orthosis (TLSO) in the case of an individual with scoliosis, would qualify as a medical expense for purposes of the medical expense tax credit ("METC"). You also indicate that the TLSO cannot be worn without a T-shirt as it will adhere to the skin because of perspiration, and that the TBS has an advantage over commercially available T-shirts in that it does not have seams which otherwise could cause pressure problems and eventual skin breakdown.

Our Comments

Medical expenses which are eligible for the METC are limited to those described in subsection 118.2(2) of the Income Tax Act (the "Act"). If a particular expenditure is not described as an eligible medical expense in subsection 118.2(2) of the Act, or if the conditions under which the expenditure would qualify are not met, the expenditure does not qualify for purposes of the METC, even though the expenditure may have been incurred for medical reasons.

Paragraph 118.2(2)(i) of the Act allows as a medical expense amounts paid for, or in respect of, an artificial limb, an iron lung, a rocking bed for poliomyelitis victims, a wheel chair, crutches, a spinal brace, a brace for a limb, an iliostomy or colostomy pad, a truss for hernia, an artificial eye, a laryngeal speaking aid, an aid to hearing, an artificial kidney machine, phototherapy equipment for the treatment of psoriasis or other skin disorders, or an oxygen concentrator, for the patient.

Paragraph 35 of IT 519R2 (Consolidated), Medical Expense and Disability Tax Credits and Attendant Care Expense Deduction, further clarifies that, by virtue of paragraph 118.2(2)(i), qualifying medical expenses include the purchase price or, where applicable, the rental charge or other expenses (for example, maintenance, repairs, supplies) related to the devices listed above.

Based on the information provided, it is our view that seamless T-shirts are not considered to be "supplies" in respect of a spinal brace, and, therefore, the cost of a Torso Body Sock would not qualify as a medical expense for purposes of the METC under subsection 118.2(2) of the Act.

We trust that these comments will be of assistance.

Yours truly,

G. Moore
for Director
Business and Partnerships Division
Income Tax Rulings Directorate
Legislative Policy and Regulatory Affairs Branch