Re: Medical Expenses Paragraph 118.2(2)(l.2)
This is in reply to your letter of November 29, 1991 concerning interest on money borrowed to finance modifications to a dwelling of a patient which qualify as a medical expense under paragraph 118.2(2)(l.2) of the Act.
As we understand the facts, a patient lacking normal physical development or necessarily confined to a wheelchair for a long continued period, borrows money to make modifications to his or her dwelling in order to be mobile and functional within the dwelling.
You have asked whether interest expense on the money so borrowed can be included in the
...reasonable expenses relating to modifications to a dwelling..."
for the purposes of paragraph 118.2(2)(l.2).
In our opinion, provided the borrowed funds are used solely for the purpose of making modifications to a dwelling and those modifications qualify as a medical expense under paragraph 118.2(2)(l.2), the related interest expense would also qualify as a medical expense under that provision.
We trust our comments are of assistance to you.
Yours truly,
for DirectorBusiness and General DivisionRulings DirectorateLegislative and Intergovernmental Affairs Branch