Income Tax Act - Section 118.2

Medical expenses

(2) For the purposes of subsection 118.2(1), a medical expense of an individual
is an amount paid

(a) to a medical practitioner, dentist or nurse or a public or licensed private
hospital in respect of medical or dental services provided to a person (in this
subsection referred to as the "patient") who is the individual, the individual's
spouse or a dependant of the individual (within the meaning assigned by
subsection 118(6)) in the taxation year in which the expense was incurred;

(b) as remuneration for one full-time attendant (other than a person who, at the
time the remuneration is paid, is the individual's spouse or is under 18 years
of age) on, or for the full-time care in a nursing home of, the patient in
respect of whom an amount would, but for paragraph 118.3(1)(c), be deductible
under section 118.3 in computing a taxpayer's tax payable under this Part for
the taxation year in which the expense was incurred;

(b.1) as remuneration for attendant care provided in Canada to the patient if

(i) the patient is a person in respect of whom an amount may be deducted under
section 118.3 in computing a taxpayer's tax payable under this Part for the
taxation year in which the expense was incurred,

(ii) no amount is included under section 63 or 64 or paragraph 118.2(2)(b),
118.2(2)(c), 118.2(2)(d) or 118.2(2)(e) in computing a deduction claimed in
respect of the patient for the taxation year in which the remuneration was paid,

(iii) at the time the remuneration is paid, the attendant is neither the
individual's spouse nor under 18 years of age, and

(iv) each receipt filed with the Minister to prove payment of the remuneration
was issued by the payee and contains, where the payee is an individual, that
individual's Social Insurance Number,

to the extent that the total of amounts so paid does not exceed $10,000 (or
$20,000 if the individual dies in the year);

(c) as remuneration for one full-time attendant on the patient in a
self-contained domestic establishment in which the patient lives, if

(i) the patient is, and has been certified by a medical practitioner to be, a
person who, by reason of mental or physical infirmity, is and is likely to be
for a long-continued period of indefinite duration dependent on others for the
patient's personal needs and care and who, as a result thereof, requires a
full-time attendant,

(ii) at the time the remuneration is paid, the attendant is neither the
individual's spouse nor under 18 years of age, and

(iii) each receipt filed with the Minister to prove payment of the remuneration
was issued by the payee and contains, where the payee is an individual, that
individual's Social Insurance Number;

(d) for the full-time care in a nursing home of the patient, who has been
certified by a medical practitioner to be a person who, by reason of lack of
normal mental capacity, is and in the foreseeable future will continue to be
dependent on others for the patient's personal needs and care;

(e) for the care, or the care and training, at a school, institution or other
place of the patient, who has been certified by an appropriately qualified
person to be a person who, by reason of a physical or mental handicap, requires
the equipment, facilities or personnel specially provided by that school,
institution or other place for the care, or the care and training, of
individuals suffering from the handicap suffered by the patient;

(f) for transportation by ambulance to or from a public or licensed private
hospital for the patient;

(g) to a person engaged in the business of providing transportation services, to
the extent that the payment is made for the transportation of

(i) the patient, and

(ii) one individual who accompanied the patient, where the patient was, and has
been certified by a medical practitioner to be, incapable of travelling without
the assistance of an attendant

from the locality where the patient dwells to a place, not less than 40
kilometres from that locality, where medical services are normally provided, or
from that place to that locality, if

(iii) substantially equivalent medical services are not available in that
locality,

(iv) the route travelled by the patient is, having regard to the circumstances,
a reasonably direct route, and

(v) the patient travels to that place to obtain medical services for himself or
herself and it is reasonable, having regard to the circumstances, for the
patient to travel to that place to obtain those services;

(h) for reasonable travel expenses (other than expenses described in paragraph
118.2(2)(g)) incurred in respect of the patient and, where the patient was, and
has been certified by a medical practitioner to be, incapable of travelling
without the assistance of an attendant, in respect of one individual who
accompanied the patient, to obtain medical services in a place that is not less
than 80 kilometres from the locality where the patient dwells if the
circumstances described in subparagraphs 118.2(2)(g)(iii), 118.2(2)(g)(iv) and
118.2(2)(g)(v) apply;

(i) for or in respect of an artificial limb, iron lung, rocking bed for
poliomyelitis victims, wheel chair, crutches, spinal brace, brace for a limb,
ileostomy or colostomy pad, truss for hernia, artificial eye, laryngeal speaking
aid, aid to hearing or artificial kidney machine, for the patient;

(i.1) for or in respect of diapers, disposable briefs, catheters, catheter
trays, tubing or other products required by the patient by reason of
incontinence caused by illness, injury or affliction;

(j) for eye glasses or other devices for the treatment or correction of a defect
of vision of the patient as prescribed by a medical practitioner or optometrist;

(k) for an oxygen tent or other equipment necessary to administer oxygen or for
insulin, oxygen, liver extract injectible for pernicious anaemia or vitamin B12
for pernicious anaemia, for use by the patient as prescribed by a medical
practitioner;

(l) on behalf of the patient who is blind or profoundly deaf or has a severe and
prolonged impairment that markedly restricts the use of the patient's arms or
legs,

(i) for an animal specially trained to assist the patient in coping with the
impairment and provided by a person or organization one of whose main purposes
is such training of animals,

(ii) for the care and maintenance of such an animal, including food and
veterinary care,

(iii) for reasonable travel expenses of the patient incurred for the purpose of
attending a school, institution or other facility that trains, in the handling
of such animals, individuals who are so impaired, and

(iv) for reasonable board and lodging expenses of the patient incurred for the
purpose of the patient's full-time attendance at a school, institution or other
facility referred to in subparagraph 118.2(2)(l)(iii);

(l.1) on behalf of the patient who requires a bone marrow or organ transplant,

(i) for reasonable expenses (other than expenses described in subparagraph
118.2(2)(l.1)(ii)), including legal fees and insurance premiums, to locate a
compatible donor and to arrange for the transplant, and

(ii) for reasonable travel, board and lodging expenses (other than expenses
described in paragraphs 118.2(2)(g) and 118.2(2)(h)) of the donor (and one other
person who accompanies the donor) and the patient (and one other person who
accompanies the patient) incurred in respect of the transplant;

(l.2) for reasonable expenses relating to renovations or alterations to a
dwelling of the patient who lacks normal physical development or has a severe
and prolonged mobility impairment, to enable the patient to gain access to, or
to be mobile or functional within, the dwelling;

(l.3) for reasonable expenses relating to rehabilitative therapy, including
training in lip reading and sign language, incurred to adjust for the patient's
hearing or speech loss;

(l.4) on behalf of the patient who has a speech or hearing impairment, for sign
language interpretation services, to the extent that the payment is made to a
person engaged in the business of providing such services;

(l.5) for reasonable moving expenses (within the meaning of subsection 62(3),
but not including any expense deducted under section 62 for any taxation year)
of the patient, who lacks normal physical development or has a severe and
prolonged mobility impairment, incurred for the purpose of the patient's move to
a dwelling that is more accessible by the patient or in which the patient is
more mobile or functional, if the total of the expenses claimed under this
paragraph by all persons in respect of the move does not exceed $2,000;

(l.6) for reasonable expenses relating to alterations to the driveway of the
principal place of residence of the patient who has a severe and prolonged
mobility impairment, to facilitate the patient's access to a bus;

118.2(2).(l.7) for a van that, at the time of its acquisition or within 6 months
after that time, has been adapted for the transportation of the patient who
requires the use of a wheelchair, to the extent of the lesser of $5,000 and 20%
of the amount by which

(i) the amount paid for the acquisition of the van

exceeds 

(ii) the portion, if any, of the amount referred to in subparagraph 118.2(2)(i)
that is included because of paragraph 118.2(2)(m) in computing the individual's
deduction under this section for any taxation year;

(l.8) for reasonable expenses (other than amounts paid to a person who was at
the time of the payment the individual's spouse or a person under 18 years of
age) to train the individual, or a person related to the individual, if the
training relates to the mental or physical infirmity of a person who

(i) is related to the individual, and

(ii) is a member of the individual's household or is dependent on the individual
for support;

(m) for any device or equipment for use by the patient that

(i) is of a prescribed kind,

(ii) is prescribed by a medical practitioner,

(iii) is not described in any other paragraph of this subsection, and

(iv) meets such conditions as are prescribed as to its use or the reason for its
acquisition;

to the extent that the amount so paid does not exceed the amount, if any,
prescribed in respect of the device or equipment;

(n) for drugs, medicaments or other preparations or substances (other than those
described in paragraph 118.2(2)(k)) manufactured, sold or represented for use in
the diagnosis, treatment or prevention of a disease, disorder, abnormal physical
state, or the symptoms thereof or in restoring, correcting or modifying an
organic function, purchased for use by the patient as prescribed by a medical
practitioner or dentist and as recorded by a pharmacist;

(o) for laboratory, radiological or other diagnostic procedures or services
together with necessary interpretations, for maintaining health, preventing
disease or assisting in the diagnosis or treatment of any injury, illness or
disability, for the patient as prescribed by a medical practitioner or dentist;

(p) to a person authorized under the laws of a province to carry on the business
of a dental mechanic, for the making or repairing of an upper or lower denture,
or for the taking of impressions, bite registrations and insertions in respect
of the making, producing, constructing and furnishing of an upper or lower
denture, for the patient; or

(q) as a premium, contribution or other consideration under a private health
services plan in respect of one or more of the individual, the individual's
spouse and any member of the individual's household with whom the individual is
connected by blood relationship, marriage or adoption, except to the extent that
the premium, contribution or consideration is deducted under subsection 20.01(1)
in computing an individual's income from a business for any taxation year.

Deemed medical expense

(3) For the purposes of subsection 118.2(1),

(a) any amount included in computing an  individual's income for a taxation year
from an office or employment in respect of a medical expense described in
subsection 118.2(2) paid or provided by an employer at a particular time shall
be deemed to be a medical expense paid by the individual at that time; and

(b) there shall not be included as a medical expense of an individual any
expense to the extent that

(i) the individual,

(ii) the person referred to in subsection 118.2(2) as the patient,

(iii) any person related to a person referred to in subparagraph 118.2(3)(b)(i)
or 118.2(3)(b)(ii), or

(iv) the legal representative of any person referred to in any of subparagraphs
118.2(3)(b)(i) to 118.2(3)(b)(iii)

is entitled to be reimbursed for the expense, except to the extent that the
amount of the reimbursement is required to be included in computing income and
is not deductible in computing taxable income.

Deemed payment of medical expenses

(4) Where, in circumstances in which a person engaged in the business of
providing transportation services is not readily available, an individual makes
use of a vehicle for a purpose described in paragraph 118.2(2)(g), the
individual or the individual's legal representative shall be deemed to have paid
to a person engaged in the business of providing transportation services, in
respect of the operation of the vehicle, such amount as is reasonable in the
circumstances.

S.C. 1988, c. 55, s. 92; S.C. 1990, c. 39, s. 25; S.C. 1994, c. 7, Sch. II, s.
89; S.C. 1994, c. 7, Sch. VII, s9; S.C. 1994, c. 7, Sch. VIII, s. 54; S.C. 1998,
c. 19, s. 23; S.C. 1999, c. 22, s. 34.