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.
Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the Department.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle du ministère.
Principal Issues: What is appropriate % of retirement home fees deductible as a medical expense ?
Position: NIL unless patient is certified (118.3(1)) and retirement home provides nursing care of the type provided by a nursing home. Sent a copy of correspondance to Toronto North TSO
Reasons: 118,2(2)(b)
XXXXXXXXXX 982132
C. Tremblay
October 6, 1998
Dear Sir;
Re: Retirement Centre Annual Fees
This is in reply to your letter of June 19, 1998, to the Toronto North TSO that was forwarded to us for reply. It concerns whether a specific percentage of an amount paid by residents of retirement centres can be considered as a medical expense.
As noted earlier, no percentage of the fees paid to a retirement centre are allowable as a medical expense pursuant to subsection 118.2(2) of the Act, unless the medical condition of the resident who is claiming a medical expense tax credit meets the requirement of certification by a medical practitioner and the retirement centre provides the level of full-time care expected of a “nursing home.” It is a question of fact whether a facilty provides nursing care of the type provided by a nursing home.
We will be sending a copy of this letter and the information you previously supplied us in April to client services of the Toronto North Tax Services Office. Should you wish to discuss the matter further, please contact Mr. Don Collins, Assistant Director, Client Services at 416-512-4000.
We trust our comments are of assistance,
Yours truly,
J. F. Oulton, CA
for Director
Business and Publications Division
Income Tax Rulings and
Interpretations Directorate
Policy & Legislation Branch
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