Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the CRA.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ARC.
Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the CCRA.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ADRC.
Principal Issues:
Can amounts paid to a nursing home for which an Ontario Property tax credit is obtained also be eligible for the federal/medical expense tax credit?
Position:
Yes
Reasons:
The Income Tax Act does not prohibit or reduce a claim for the medical expense tax credit in these circumstances.
Lena Holloway, CA
XXXXXXXXXX (613) 957-2104
2003-004578
November 25, 2003
Dear XXXXXXXXXX:
Re: Medical Expense Tax Credit and Ontario Property Tax Credit
We are replying to your letter of October 14, 2003 wherein you enquired whether the Income Tax Act (the "Act") would prohibit an individual from claiming a federal non-refundable tax credit for which they are also claiming a provincial refundable credit. In particular you have noted that an Ontario Property Tax Credit may be claimed in respect of rental payments made by residents of nursing homes, while these same amounts may constitute eligible medical expenses under paragraph 118.2(2)(b) of the Act.
Your letter correctly noted that paragraph 248(28)(b) of the Act does not permit the deduction of any amount in computing tax payable (e.g. a tax credit) to the extent such amount has already been directly or indirectly deducted in computing tax payable for the year or any preceding year. We would also like to confirm your understanding that paragraph 248(28)(b) applies for purposes of computing federal tax payable only and does not extend to limit any credit against provincial tax payable granted by any of the provinces through their own taxing statutes.
We trust the above comments are of assistance.
Yours truly,
Daryl Boychuk, LL.B
for Director
Business and Partnerships Division
Income Tax Rulings Directorate
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