Before finding that a taxpayer with Alzheimer's who was housed in a special-care unit could claim the s. 118.2(2)(e) credit in addition to the s. 118.3 credit for mental or physical impairment, the Directorate stated:
Where an individual claims the medical expenses in respect of either remuneration paid to an individual's attendant or the individual's living expenses in a nursing home, the individual will not be able to claim the credit for mental or physical impairment by reason of paragraph 118.3(1)(c). Generally, a claim for the medical expense credit in respect of remuneration paid to an attendant or for a stay in a nursing home is made under paragraphs 118.2(2)(b) and (d).
However, a school, institution or other place referred to in paragraph 118.2(2)(e) may also fall under the definition of nursing home. Thus, an individual who claims the medical expense tax credit under paragraph 118.2(2)(e) could be denied access to the tax credit for mental or physical impairment if the only care the individual requires is that in a nursing home and not the specialized care by an institution described in paragraph 118.2(2)(e).