Principal Issues: [TaxInterpretations translation] Are certain renovations made to the taxpayer's residence eligible for the medical expense tax credit?
Position: Question of fact. We have provided general comments on paragraph 118.2(2)(l.2) of the Act.
Reasons: Income Tax Act.
XXXXXXXXXX 2009-034549
November 2, 2009
Dear Madam,
Re: Medical Expense Tax Credit
This is further to your letter dated October 12, 2009 asking if you can claim the Medical Expense Tax Credit for certain expenses you incurred in respect of your home.
Unless otherwise indicated, all statutory references herein are to the provisions of the Income Tax Act (the "Act").
Our Comments
As stated in paragraph 22 of Information Circular 70-6R5 of May 17, 2002, it is the practice of the Canada Revenue Agency not to issue written opinions on proposed transactions otherwise than by way of advance income tax rulings. Furthermore, when it comes to determining whether a completed transaction has received appropriate tax treatment, the determination is made first by our Tax Services Offices as a result of their review of all facts and documents, which is usually performed as part of an audit engagement. However, we can offer the following general comments that we hope may be helpful to you. These comments may, however, under certain circumstances, not apply to your particular situation.
The medical expense tax credit applies to individuals who have incurred significant medical expenses for themselves or some of their dependants. An individual's eligible medical expenses are not limited to expenses incurred or paid in Canada, but must have been paid for the individual, the individual's spouse or a dependant. For the purposes of the medical expense tax credit, a person qualifies as a "dependant" of the individual for a particular taxation year if the person satisfies the following conditions:
(a) is the child, grandchild, father, mother, grandfather, grandmother, brother, sister, uncle, aunt, niece or nephew of the individual or the individual's spouse;
(b) has been dependent on the individual for support at any time in the year;
(c) was resident in Canada at any time in the year; this residence requirement does not apply if the person is the child or grandchild of the individual or the individual's spouse.
An individual may claim the medical expense tax credit in respect of renovations and alterations made to the home of the individual, the individual's spouse or common-law partner or a dependant under paragraph 118.2(2)(l.2). To be eligible, these expenses must have been paid to enable the individual, spouse or common-law partner, or dependant to gain access to, or to be mobile or functional within, the dwelling and be more self-sufficient. Expenses included in this category are reasonable expenses relating to renovations or alterations to a dwelling, such as the following:
(a) the purchase and installation of interior or exterior ramps where stairs impede the mobility of a person with a disability;
(b) enlarging hallways and doors to allow the person with a disability access to different rooms in the dwelling
(c) lowering kitchen or bathroom counters to allow access by a person with a disability.
The types of structural modifications that may be eligible are not restricted to the examples given above. “Reasonable expenses" related to a particular structural change may include amounts paid to an architect or contractor.
In the situation you presented to us, we do not believe that the expenses related to the renovation of part of the existing roof, the addition of beams and the installation of asphalt shingles can give rise to the medical expense tax credit. With respect to the replacement and lowering of windows with sliding openings, such expenditures could potentially qualify for the medical expense tax credit if the requirements set forth above are satisfied.
For more information on the medical expense tax credit, please refer to Interpretation Bulletin IT-519R2, Medical expense and disability tax credits and attendant care expense deduction, which can be found on the Canada Revenue Agency website at http://www.cra-arc.gc.ca/E/pub/tp/it519r2-consolid/READ-ME.html.
We hope that the above comments are of assistance.
Best regards,
François Bordeleau, Advocate
Manager
Business and Partnerships Section
Income Tax Rulings Directorate.