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 amount paid for 24-hour respite care or 24-hour care for a disabled person provided in a home qualifies for the medical expense tax credit (METC).
Position: Yes if all the conditions of the particular provision are met as various provisions may apply. It is a question of fact if all the conditions are met and thus general comments provided.
Reasons: Wording of the provisions.
XXXXXXXXXX
2011-039906
Chrys Tzortzis, CA
May 25, 2011
Dear XXXXXXXXXX :
Re: Respite Care and Care in a Home
We are writing in reply to your email dated March 14, 2011, wherein you inquire whether an amount paid for 24-hour respite care or 24-hour care for a disabled person provided in a home qualifies for the medical expense tax credit ("METC").
Written confirmation of the tax consequences that apply to a particular fact situation is given by this Directorate only in the context 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. This Information Circular and other CRA publications can be accessed on the CRA Web site at www.cra-arc.gc.ca. However, we are prepared to provide the following general comments, which may be of assistance.
Medical expenses which are eligible for the METC are described in subsection 118.2(2) of the Income Tax Act (the "Act"). For example, there are various provisions that may apply to allow an amount paid for attendant care or nursing home care to qualify for the METC and each provision has its own specific requirements that must be met in order for the expenditure to be eligible for the METC pursuant to that particular provision. Paragraphs 23 to 30 of Interpretation Bulletin IT-519R2 (Consolidated), Medical Expense and Disability Tax Credits and Attendant Care Expense Deduction, describe the various provisions that may apply. In addition, reference may also be made to CRA Guide RC4064, Medical and Disability-Related Information.
Since the term "nursing home" is not defined in the Act, we rely on the ordinary meaning of the term in determining if a particular facility qualifies as a nursing home. Generally, we consider a nursing home to be an establishment that provides full-time maintenance or nursing care for persons who are unable to care for themselves. While we accept that a particular place need not be a licensed nursing home, we are of the view that it must have the equivalent features and characteristics of a nursing home. For example, a nursing home is normally a facility of a public character which offers 24-hour nursing care to individuals who are not related to the facility owner/operator.
We trust that these comments will be of assistance. Without knowing the particulars of the situation, we cannot offer more definitive comments.
Yours truly,
G. Moore
For Director
Business and Partnerships Division
Income Tax Rulings Directorate
Legislative Policy and Regulatory Affairs Branch
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