16 June 2010 External T.I. 2010-0361221E5 - Wheelchair & bath cushion as medical expense

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: 1. Whether a wheelchair cushion qualifies as a medical expense. 2. Whether bath cushions qualify as medical expenses.

Position: 1. Yes. 2. No.

Reasons: 1. 118.2(2)(i). 2. Bath cushions are not provided for under ss. 118.2(2) or Regulation 5700.

XXXXXXXXXX
				2010-036122
				R. Ferrari
June 16, 2010

Dear XXXXXXXXXX :

Re: Wheelchair cushion as a medical expenses

We are writing in reply to your letter of March 17, 2010, wherein you requested our views with respect to whether certain items you have purchased to relieve pressure sores are eligible medical expenses for the purposes of the medical expense tax credit ("METC").

You have asked whether a specialized wheelchair cushion, which is manufactured for wheelchairs, qualifies for the purposes of the METC. Additionally, you have asked whether bath cushions are eligible medical expenses.

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. Where the particular transactions are completed, the inquiry should be addressed to the relevant tax services office. However, we are prepared to provide you with some 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 was incurred for medical reasons.

Paragraph 118.2(2)(i) of the Act allows as a medical expense, amounts paid "for, or in respect of," various items, including a wheelchair. As outlined in paragraph 35 of IT-519R2 (Consolidated) - "Medical Expense and Disability Tax Credits and Attendant Care Expense Deduction", costs in respect of these devices also include rental charges and related expenses such as maintenance, repairs and supplies. This bulletin can be found on the CRA's website at http://www.cra-arc.gc.ca/E/pub/tp/it519r2-consolid/README.html.

It is our view that the cost for the wheelchair cushion that you have described appears to meet the requirements under paragraph 118.2(2)(i) of the Act. With respect to bath cushions, we are of the opinion that amounts paid for these items will not qualify as eligible medical expenses for the purposes of the METC.

We trust that 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