20 January 2012 External T.I. 2011-0427621E5 - METC- food allergies

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 an individual with food allergies can claim the medical expense tax credit for gluten-free foods

Position: Insufficient information. General comments provided.

Reasons: It is not clear whether the individual has celiac disease.

XXXXXXXXXX
				2011-042762

January 20, 2012

Dear XXXXXXXXXX :

Re: Medical expense tax credit for gluten-free foods

This is in response to your letter dated September 2, 2011.

In your letter, you indicated that you were diagnosed with multiple food allergies, including allergies to foods containing gluten.

You enquired whether you could claim the entire cost of grains that do not have gluten as you make your own cereal and bake your own bread. In addition, you are asking if you can claim the incremental cost of certain brands of wheat-free hotdogs as medical expenses for purposes of the medical expense tax credit ("METC").

Our Comments

Paragraph 118.2(2)(r) of the Income Tax Act provides that the incremental cost of gluten-free food products, as compared to the cost of comparable non-gluten-free food products, may qualify as a medical expense if a patient has been certified in writing by a medical practitioner to be a person who, because of celiac disease, requires a gluten-free diet.

If an individual with celiac disease is claiming the incremental cost of gluten-free food as a medical expense on his or her income tax return, a letter from a medical practitioner confirming that the individual suffers from celiac disease and requires gluten-free products as a result of that disease may be required. In addition, an individual making such a claim may also be asked to provide a summary of items purchased during the 12-month period for which expenses are being claimed and provide receipts to support the incremental cost of gluten-free food being claimed. For example, if the cost of a gluten-free food product is $3.50, and the cost of a comparable non-gluten free product is $1.50, the incremental cost of $2.00 may be claimed as a medical expense.

As indicated in the 2003 Department of Finance Explanatory Notes, comparable gluten-free food products are food products produced as a substitute for food products that typically contain a gluten-free agent as a principal component and are generally targeted at persons requiring a gluten-free diet. In that sense, products such as rice, corn and buck-wheat based breads constitute eligible products. However, products that do not have gluten as a principal component such as dairy products or fruits are not eligible for this purpose. Generally, food items that are eligible are limited to those produced and marketed specifically for gluten-free diets. Additional information on this subject is available on the CRA web site as: www.cra-arc.gc.ca.

Based on the information provided in your letter, it is not clear whether you have celiac disease. If you do not have celiac disease, you would not be eligible to claim the incremental cost of gluten-free food as a medical expense for purposes of the METC.

We trust that these comments will be of assistance.

Yours truly,

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