Principal Issues: Whether an individual suffering from a mobility impairment and other health conditions including COPD (chronic obstructive pulmonary disease), insulin dependent diabetes, obesity and osteoarthritis, could claim the cost of installing a central air conditioner for the METC.
Position: Question of fact.
Reasons: The taxpayer must meet all of the conditions set out in paragraph 118.2(2)(m) of the Act and paragraph 5700(c.3) of the Regulations.
XXXXXXXXXX 2009-031475 J. Gibbons, CGA April 27, 2009
Dear XXXXXXXXXX :
Re: Medical Expense Tax Credit for Air Conditioner
This is in reply to your letter received on March 20, 2009, concerning whether the cost of installing a central air conditioner, as recommended by your doctor to help alleviate some of your health conditions, would qualify for the medical expense tax credit ("METC"). In your letter, you indicated that you suffer from a mobility impairment and other health conditions, including COPD (chronic obstructive pulmonary disease), insulin dependent diabetes, obesity, and osteoarthritis.
Our Comments
Since your enquiry concerns an actual situation involving questions of fact, it should be dealt with by your local Tax Services Office. Nonetheless, we have provided our general views regarding the application of the relevant income tax legislation. If you wish to have the Canada Revenue Agency review your actual situation, you should submit all of the relevant information and documentation to the particular Tax Services Office serving your area, a list of which is available on the "Contact Us" page of the Canada Revenue Agency website.
In order to qualify for the METC, the cost of a service or item must be described in the list of eligible medical expenses under subsection 118.2(2) of the Act. With respect to a medical device, including an air conditioner, the cost 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. The particular device must also meet such conditions as are prescribed to its use or as to the reason for its acquisition.
In the case of an air conditioner, paragraph 5700(c.3) of the Regulations prescribes "an air conditioner acquired for use by an individual to cope with the individual's severe chronic ailment, disease or disorder, to the extent of the lesser of $1,000 and 50% of the amount paid for the air conditioner."
It is a question of fact whether paragraph 118.2(2)(m) of the Act and paragraph 5700(c.3) of the Regulations would apply in any given situation. However, based on the information outlined in your letter, it is our view that you may be entitled to claim the cost of installing a central air conditioner provided that the requirements described above are met. In particular, you would need a prescription from your doctor that prescribes an air conditioner and which also indicates that you need an air conditioner to help you cope with your ailment, which is both severe and chronic. You should also note that the rules under subsection 5700(c.3) of the Regulations limit the medical expense claim for an air conditioner to the lesser of $1,000 and 50% of its cost.
We trust these 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