Dear Sirs:
This is in reply to your letter of December 19, 1990 concerning whether certain expenses are eligible for the medical expenses tax credit under section 118.2 of the Income Tax Act.
You have outlined a hypothetical fact situation involving an individual who suffers from Alzheimer's disease. The individual has been placed in a nursing home. In addition to the regular care provided by the nursing home, the patient is supervised by a full-time attendant between the hours of 7AM and 9PM. During the late evening and nighttime, the level of activity in the nursing home subsides sufficiently so that regular staff are able to adequately supervise all residents. Fees with respect to the nursing home and the full-time attendant are billed separately by Company X and are paid from the taxpayer's funds by his spouse who has power of attorney to deal with his finances.
As indicated in your telephone conversation (Eisner 19(1) on February 8, it is our understanding that the above situation relates to an equal fact situation where payments have already been made. In such circumstances, you should contact your local District Taxation Office for the Departments position on the matter you have raised. However, we are making the following general comments which we hope will be helpful to you.
It is our general view that where an Alzheimer patient, who resides in a nursing home and receives full-time care therefrom, also requires care during the day from a full-time attendant the remuneration paid for the attendant and the amounts paid for care in the nursing home would be eligible medical expenses under paragraphs 118.2(2)(b) and (d) of the Income Tax Act provided that the patient has been certified by a medical practitioner as requiring the care described in these provisions.
We trust our comments will be of assistance to you.
Yours truly,
for DirectorBusiness and General DivisionRulings DirectorateLegislative and Intergovernmental Affairs Branch