Did You Know
CRA has now permitted a medical expense for the attendant care portion of rent paid on a retirement residence including a lodge or similar facility?
A retirement residence can be any place including a nursing home or lodge providing attendant care services. Previously only nursing homes qualified for a medical expense deduction. The retirement residence should provide a receipt showing the portion of rent paid allocated to attendant care. This could include food preparation, serving, housekeeping, health care, laundry, hairdressers, drivers, social programs, and security staff. The maximum amount that can be claimed under this provision is $10,000 per year or $20,000 in the year of death. If the amount paid for attendant care is less than $10,000 per year, the disability tax credit can also be claimed.
To qualify, the resident must be able to claim the disability tax credit. A doctor's certificate on form T2201 must be completed for this tax credit. The change applies for the 2002 taxation year onwards and you can apply to have the provision apply retroactively.
Discuss your situation with a Chartered Professional Accountant. Contact Keith Anderson, BCom, CPA, CA-IT, CITP at (780) 447-5830 if you need advice.