| 19(1) | File No. 5-9569 |
| J.D. Jones | |
| (613)957-2104 |
March 29, 1990
Dear Sirs:
Re: Nursing Home Fees Paragraph 118.2(2)(d) of the Income Tax Act (the "Act")
This is in reply to your letter of February 9, 1990, wherein you requested our opinion on the eligibility of nursing home fees for the medical expenses credit pursuant to paragraph 118.2(2)(d) of the Act.
Specifically, you wish to know whether the entire fee charged to a patient, who has a severe and prolonged mental or physical impairment that has been certified as such in prescribed form by a medical doctor, by a nursing home qualifies for the medical expense credit provided for under paragraph 118.2(2)(d) of the Act.
It is our view that, in the above situation, the total amount paid by an individual to a nursing home, including board and lodging, may qualify as a medical expense pursuant to paragraph 118.2(2)(d) of the Act. While there is no definition in the Act of a nursing home, it is expected that there would be qualified medical personnel in attendance of a calibre and in sufficient numbers to provide nursing care to the patients on a 24-hour basis. We also advise that the full-time care means constant care, whether active or precautionary. If, in fact, a payment to a nursing home otherwise qualifies as a medical expense under subsection 118.2(2) of the Act, it is our view that all reasonable fees paid to that nursing home for full-time care qualify as a medical expense whether the fees include an amount for food, accommodation or nursing care. Payment in respect of recreational services such as those normally found in a nursing home would also qualify. However, fees paid for identifiable personal expenses, such as hairdresser's fees, would not qualify as a medical expense.
We trust our comments are of assistance to you.
Yours truly,
for DirectorBusiness and General DivisionSpecialty Rulings DirectorateLegislative and Intergovernmental Affairs Branch