This is in reply to your letter of April 15, 1991, wherein you requested our views as to whether or not the entire amount paid to a nursing home would qualify as an amount paid for full time care in a nursing home for purposes of paragraphs 118.2(2)(b) and (d) of the Income Tax Act (the Act).
As we understand it, one of your clients has received a receipt from a nursing home that indicates that only the "special nursing care" portion, of the total fees paid could be deducted for income tax purposes. It is your view that the total amount paid, which includes amounts for meals and rent in addition to the amount charged for nursing care, would be deductible for income tax purposes. Your opinion is made on the assumption that the taxpayer would be certified as having either a severe and prolonged mental or physical impairment or lack of normal mental capacity as required by these subparagraphs.
Our Comments
It is our opinion that if the basic requirements of subparagraphs 118.2(2)(b) and (d) of the Act are met, all normal fees paid to a nursing home can qualify as medical expenses for the purposes of claiming the medical expense credits This would include amounts levied for food, accommodation, nursing care, administration, maintenance, social programming and activities. Extra personal expenses such as hairdresser fees, would not be allowable.
However, it would involve a finding of fact as to whether or not the institution to which the relevant amounts were paid is a nursing home providing full-time care for purposes of subparagraphs 118.2(2)(b) and (d) of the Act. In this regard, full details should be submitted to the local District Taxation Office for a determination.
We trust our comments will be of assistance to you.
Yours truly,
for DirectorBusiness and General DivisionRulings DirectorateLegislative and Intergovernmental Affairs Branch
c.c. J. JacksonA/ChiefVerifications and Collections North York District Office