28 February 2011 External T.I. 2011-0395281E5 - Cold Therapy Device as Medical Expenses

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: 1. A Cryo-Cuff cold therapy device prescribed by a doctor to control and reduce knee swelling qualifies as a medical expense and, 2. whether medical devices in general need to be new devices in order to qualify as medical expenses.

Position: 1. No and 2.No

Reasons: 1.Cold therapy devices are not provided for under subsection 118.2(2) or section 5700 of the Regulations. 2. There is no requirement that medical devices otherwise meeting the conditions of subsection 118.2(2) or section 5700 of the Regulations need to be new devices.

XXXXXXXXXX 				2011-039528
					S. D'Angelo

February 28, 2011

Dear XXXXXXXXXX :

Re: Cold Therapy Device as Medical Expenses

This is in response to your correspondence of December 30, 2010, wherein you ask whether the cost of a used Cryo-Cuff therapeutic device would qualify as an eligible medical expense for the purposes of the medical expense tax credit ("METC").

In your correspondence, you indicated that you recently had replacement knee surgery and a Cryo-Cuff therapeutic device had been prescribed by a medical doctor to control and reduce swelling. You indicate that you purchased a used Cryo-Cuff and are inquiring whether the cost of this device qualifies as a medical expense and whether medical devices in general need to be new devices in order to qualify as eligible medical expenses for purposes of the METC.

Our Comments

It is not this Directorate's practice to comment on proposed transactions involving specific taxpayers other than in the form of an advanced income tax ruling. For more information about how to obtain a ruling, please refer to Information Circular 70-6R5, Advanced Income Tax Rulings, dated May 17, 2002. This Information Circular and other Canada Revenue Agency 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.

It is our understanding that a Cryo-Cuff is a cold therapy device that is placed over compression stockings and dressings after injury or surgery to the extremities. They are made for a variety of body areas and combine focal compression with cold to provide optimal control of swelling and pain.

In order for the cost of any device or equipment to qualify as a medical expense, the device or equipment must be prescribed by a medical practitioner and be described in specific provisions of subsection 118.2(2) of the Income Tax Act (the "Act") or prescribed by section 5700 of the Income Tax Regulations ("Regulations"). There is no requirement that a medical device otherwise meeting the provisions of subsection 118.2(2) of the Act or prescribed by section 5700 of the Regulations needs to be a new device in order to qualify for the METC.

Cold therapy devices (new or used) are not provided for in any of the paragraphs of subsection 118.2(2) of the Act or in the noted Regulations. Consequently, the cost of such devices or equipment does not qualify as medical expenses for purposes of the METC.

Further information on devices and equipment prescribed by Regulation 5700 may be found in paragraph 56 and the Appendix of Interpretation Bulletin IT-519R2 (Consolidated), Medical Expense and Disability Tax Credits and Attendant Care Expenses Deduction, posted at: http://www.cra-arc.gc.ca/E/pub/tp/it519r2-consolid/it519r2-consolid-e.html.

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