Principal Issues: Whether the cost of a personal trainer qualifies for the chid fitness tax credit?
Position: Question of fact but it could be.
Reasons: If a contract was entered with a personal trainer for sessions that occur weekly for a minimum of eight weeks, or for five or more consecutive days and the "physical activity" definition criteria are met, the cost of a personal trainer could qualify.
November 24, 2009
Ministerial Enquiries and Executive Group Income Tax Rulings Directorate 2009-034820
Children's Fitness Tax Credit
In response to your request of November17, 2009, we are providing you with the following insert to be included in reply to the queries raised by a taxpayer regarding the above-noted subject.
"In general terms, the children's fitness tax credit is based on the amount paid in the year, up to a maximum of $500 by an individual as an "eligible fitness expense" for his or her child who is under the age of 16 at the beginning of the year. For a child that is eligible for the disability tax credit, the eligible fitness expenses incurred up to the age of 18 will qualify for the credit and maximum amount will be of $1,000. The phrase eligible fitness expense is defined in the Income Tax Act as a fee attributable to the cost of the child's registration in a prescribed program of physical activity.
The Income Tax Regulations define a prescribed program of physical activity for the purpose of the children's fitness tax credit to include, among other things, a weekly program, which is not part of a school's curriculum, of a duration of eight or more consecutive weeks in which all or substantially all of the activities include a significant amount of "physical activity." As well, it includes a program, which is not part of a school's curriculum, of a duration of five or more consecutive days of which more than 50% of the daily activities include a significant amount of physical activity.
The expression physical activity is defined in the Regulations as a supervised activity suitable for children that contributes to cardio-respiratory endurance plus one or more of muscular strength, muscular endurance, flexibility, or balance. Also, the Regulations provide that for children who are eligible for the disability tax credit, this expression means a supervised activity, suitable for children, that results in movement and an observable expenditure of energy in a recreational context.
An eligible fitness expense includes the cost of a program including administration, instruction, rental of required facilities, and uniforms and equipment and does not include the cost of accommodation, travel, food or beverages, any amount deductible as child care expenses.
Whether the particular services of a personal trainer meet these criteria is a question of fact. However, if you entered into a contract with a personal trainer for sessions that occur weekly for a minimum of eight weeks, or for five or more consecutive days, then the duration criteria will be met. Assuming that the "physical activity" definition criteria are met, the cost of a personal trainer could qualify for the Children's Fitness Tax Credit."
We trust that these comments will be of assistance.
Louise J. Roy
Manager
for Division Director
Ontario Corporate Tax Division
Income Tax Rulings Directorate
Legislative Policy and Regulatory Affairs Branch