20 June 1996 External T.I. 9612335 - 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.

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.

		961233
XXXXXXXXXX	M. Eisner

June 20, 1996

Dear Sir:

Re: Medical Expense Tax Credit

This is in reply to your letter of April 2, 1996, in which you asked us whether certain expenses you paid during 1992 qualify for the purposes of the medical expense tax credit. We also acknowledge our telephone conversation (Eisner\XXXXXXXXXX) on May 31, 1996.

In the circumstances of your situation,

XXXXXXXXXX

In anticipation of their arrival, you incurred some expenses during the latter part of 1992. For the purposes of enabling Mrs. X to be functional at your residence, some modifications (e.g., installation of handrails and grab bars) were made. These expenses totalled approximately $XXXXXXXXXX In the case of Mr. Y, modifications were made to the basement of your home, which cost approximately $XXXXXXXXXX

Our Comments

We have enclosed a copy of Interpretation Bulletin IT-519R, which explains the medical expense tax credit.

An individual's qualifying medical expenses can include amounts paid on behalf of the individual, the individual's spouse or a "dependant" (see paragraphs 14 and 15 of IT-519R) of the individual. As indicated in paragraph 15(b), a "dependant" must be dependent upon the individual for support. As it is our understanding that Mrs. X has a substantial annual income, it is our view that she would not be dependent upon you for support. Further, if she were a dependant, it is not likely that a claim for the $XXXXXXXXXX as medical expenses would result in any income tax advantage to you. (See paragraph 18 of IT-519R for a discussion of how the credit works.)

In the case of Mr. Y, it is our understanding that he receives social assistance payments. On the basis that these payments enable him to be financially self-sufficient, it is also our view that he would probably not be dependent upon you for support. On the other hand, if he were dependent on you for support, we refer you to paragraph 56 of IT-519R that explains which renovations and alterations to a dwelling qualify for the medical expense tax credit. One of the requirements is that the patient must be someone who lacks normal physical development or has a severe and prolonged mobility impairment. Because Mr. X is not physically handicapped, the costs of renovating the home to accommodate him would not qualify as medical expenses for the purposes of the medical expense tax credit.

We trust our comments will be of assistance to you.

Yours truly,

John F. Oulton
for Director
Business and Publications Division
Income Tax Rulings and
Interpretations Directorate
Policy and Legislation Branch