28 September 2011 External T.I. 2011-0404911E5 - medical expenses - driveway resurfacing

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 resurfacing a driveway would qualify as a medical expense for an individual with a severe and prolonged mobility impairment for purposes of paragraph 118.2(2)(l.6)? Would the cost of installing a walkway from the individual's house to the driveway also qualify as a medical expense under that provision or any other provision of the ITA?

Position: 1. The cost of the driveway would qualify as a medical expense. 2. The cost of the walkway would not qualify as a medical expense.

Reasons: The law.

XXXXXXXXXX 	2011-040491
									J. Gibbons, CGA
September 28, 2011

Dear XXXXXXXXXX :

Re: Medical Expense Tax Credit ("METC") - Resurfacing a Driveway and
Installing a Walkway

This is in reply to your letter of April 28, 2011, concerning whether the cost of resurfacing your driveway and building a walkway from the driveway to the entrance of your home would qualify as eligible medical expenses for purposes of the medical expense tax credit ("METC") in subsection 118.2(1) of the Income Tax Act (the "Act").

In your letter, you indicate that you have difficulty walking and, as a result, you have to use two canes. In order to gain access to your home from your driveway, you have to walk across uneven lawn, which creates a falling hazard. You also indicate that your driveway is in such a state of deterioration that it can no longer be used by the drivers who take you to your appointments.

Written confirmation of the tax implications inherent in particular transactions is given by this Directorate only where the transactions are proposed and are the subject matter of an advance income tax ruling request submitted in the manner set out in Information Circular 70-6R5, Advance Income Tax Rulings, dated May 17, 2002. Also, where the particular transactions are completed, the inquiry should be addressed to the relevant Tax Services Office. However, we are prepared to provide the following general comments.

Medical expenses which are eligible for the METC are limited to those described in subsection 118.2(2) of 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.

Pursuant to paragraph 118.2(2)(l.6) of the Act, an individual who has a severe and prolonged mobility impairment may claim, as an eligible medical expense, reasonable expenses relating to alterations to the driveway of the individual's principal place of residence in order to facilitate access to a bus. Although this provision refers specifically to alterations that facilitate access to a bus, it is our view that reasonable expenses relating to alterations to the driveway of the individual's principal place of residence would also qualify under this provision if they facilitate access to the whatever mode of transportation, bus or otherwise, that is ordinarily used by the individual.

It is a question of fact whether the cost of alterations to a driveway would qualify as an eligible medical expense under paragraph 118.2(2)(l.6) of the Act, and this determination would depend on whether an individual's mobility impairment is severe and prolonged and whether the expenses are reasonable in the circumstances. In this regard, based on the information provided, it is our view that the cost of resurfacing a deteriorated driveway that has become a walking hazard would generally qualify under paragraph 118.2(2)(l.6) as an eligible medical expense for an individual with a severe and prolonged mobility impairment.

With regard to the cost of installing a walkway, based on the information provided, it is our view that this cost would not qualify as an eligible medical expense under paragraph 118.2(2)(l.6) of the Act or any other provision in the Act.

We trust 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