5 January 2011 External T.I. 2010-0385911E5 - Prescription for exercise equipment as METC

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 exercise equipment qualifies for the purpose of the METC if a prescribed by a medical practitioner.

Position: No.

Reasons: Exercise equipment is not included in subsection 118.2(2), nor is it a prescribed device or equipment listed under Regulation 5700.

XXXXXXXXXX
						2010-038591
						Rob Ferrari

January 5, 2011

Dear XXXXXXXXXX :
Re: Exercise Equipment as Medical Expense

This is in response to your letter of October 27, 2010, inquiring whether the cost of exercise equipment qualifies as a medical expense for the purpose of the medical expense tax credit ("METC"). Your letter indicates that the equipment was prescribed by a licensed medical practitioner to treat your husband's high cholesterol level.

Our Comments

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 a request for an advance income tax ruling submitted in the manner set out in Information Circular 70-6R5, "Advanced Income Tax Rulings", dated May 17, 2002. This Information Circular as well as Interpretation Bulletin IT-519R2 (Consolidated), "Medical Expense and Disability Tax Credits and Attendant Care Expense Deduction", ("IT-519R2") can be accessed on the internet at http://www.cra-arc.gc.ca. However, we are prepared to provide the following comments.

In order for an expense to qualify as a medical expense for the purposes of the METC, the cost of a service or item must be described as an eligible medical expense under subsection 118.2(2) of the Income Tax Act (the "Act"). With regard to a particular medical device, it may qualify as a medical expense under paragraph 118.2(2)(m) of the Act if it is prescribed under section 5700 of the Income Tax Regulations (the "Regulations"), and is for the patient's use as prescribed by a medical practitioner. This paragraph also provides that the particular medical device must also meet such conditions as are prescribed to its use or as to the reason for its acquisition.

Although your husband's medical practitioner may have issued a prescription for the exercise equipment, the exercise equipment described in your letter is not listed under subsection 118.2(2) of the Act or as a device or equipment as prescribed under section 5700 of the Regulations. We are therefore of the view that the cost of the exercise equipment does not qualify as a medical expense for the purposes of the METC.

We trust our 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