27 October 2010 External T.I. 2010-0379331E5 - Medical Expense Tax Credit

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 following expenses are eligible medical expenses for the purposes of the medical expense tax credit: 1) a dock landing gate as a safety measure associated with the use of a wheelchair, 2) the application of 3M window film on all interior windows of a house to filter out UV rays, 3) an air purifier for a house because of asthma and a compromised immune system

Position: 1) Yes 2) no 3) Yes

Reasons: 1) Paragraph 118.2(2)(l.2) of the Act provides for reasonable expenses relating to renovations or alterations (including extensions) to a dwelling of the patient who lacks normal physical development or has a severe and prolonged mobility impairment, to enable the patient to gain access to, or to be mobile or functional within, the dwelling. 2) The application of 3M window film on all interior windows of a house to filter out UV rays is not a prescribed device under paragraph 5700(i) of the Regulations. There is also no other provision under subsection 118.2(2) of the Act which would permit the cost of the 3M window film to be claimed as an eligible medical expense for the purposes of the METC. 3) Under the list of prescribed devices or equipment in section 5700 of the Regulations, paragraph (c.1) describes an "air or water filter or purifier for use by an individual who is suffering from a severe chronic respiratory ailment or a severe chronic immune system disregulation to cope with or overcome that ailment or disregulation".

XXXXXXXXXX
									2010-037933
									Charles Rafuse

October 27, 2010

Dear XXXXXXXXXX :

Re: Medical Expense Tax Credit

This is in response to your letter of August 22, 2010 wherein you provided a list of expenditures you have made or will be making and asked whether they are eligible medical expenses for the purposes of the medical expense tax credit ("METC").

You included a letter from your doctor indicating a number of items required by you due to your medical conditions. In particular, you require a dock landing gate as a safety measure associated with your use of a wheelchair and the application of 3M window film on all interior windows of your house to filter out UV rays as you suffer from Lupus, a chronic auto-immune disorder. In addition, he indicated that you should acquire an air purifier for your house because of your asthma and compromised immune system.

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 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. Where the particular transactions are completed, the inquiry should be addressed to the relevant Tax Services Office (the "TSO"). We are, however, prepared to offer the following general comments, which may be of assistance.

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. 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.

Paragraph 118.2(2)(l.2) of the Act provides for reasonable expenses relating to renovations or alterations (including extensions) to a dwelling of the patient who lacks normal physical development or has a severe and prolonged mobility impairment, to enable the patient to gain access to, or to be mobile or functional within, the dwelling.

Subparagraphs 118.2(2)(l.2)(i) and 118.2(2)(l.2)(ii) provide that such costs are eligible as medical expenses for purposes of the METC provided the expenses:

(i) are not of a type that would typically be expected to increase the value of the dwelling, and
(ii) are not of a type that would not normally be incurred by persons who have normal physical development or who do not have a severe and prolonged mobility impairment.

Based on the above, it would appear that the expense to add a dock landing gate as a safety measure associated with your use of a wheelchair would qualify as a medical expense for purposes of the METC under subsection 118.2(2) of the Act since this expense would typically not be expected to increase the value of the home.

Under the list of prescribed devices or equipment in section 5700 of the Regulations, paragraph (c.1) describes an "air or water filter or purifier for use by an individual who is suffering from a severe chronic respiratory ailment or a severe chronic immune system disregulation to cope with or overcome that ailment or disregulation". You indicate that you have asthma and a compromised immune system. It is our view that the cost of the air purifier would qualify as a medical expense for purposes of the METC.

With respect to whether the cost of the application of 3M window film on all interior windows of your house to filter out UV rays qualifies as a medical expense, it is not a prescribed device listed under paragraph 5700(i) of the Regulations. There is no other provision under subsection 118.2(2) of the Act which would permit the cost of the 3M window film to be claimed as an eligible medical expense for the purposes of the METC.

We are enclosing your receipts and the letter from your physician, for your records.

We trust that these comments will be of assistance.

Yours sincerely,

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