Banka: Some carehome expenses are deductible

Canada Revenue has ruled that several items provided by a car home establishment would be deductible.

If your loved one is in a care home of some sort, some or all of the monthly expenses may be deductible as medical expenses subject to some conditions.

The first condition is in respect to the care home.

The Canada Revenue Agency (CRA) has defined the kinds of care homes and the services that must be provided in order to make the amount deductible.

The most obvious is the nursing home where there is 24-hour care provided to patients unable to care for themselves.

A retirement home is defined as serving individuals that don’t require constant care and attention but may provide some of the same services as a nursing home.

In addition, care services could also be provided in a school or institution or a group home, or even in a private home.

The homes don’t necessarily need to be licensed.

Several cases were brought forward arguing that the services provided in a retirement home and other kinds of care homes were equal to the services provided in a nursing home should be deductible.

The CRA ruled that the following items provided by an establishment would be deductible.

These items are: your share of salaries or wages paid to the employees of the establishment, food preparation, housekeeping services for personal living space, health care services, social services, salon services if included in the monthly fee, transportation and security.

The establishment must provide a bill that is detailed enough so that you can distinguish between the items that are deductible from those that are not.

The next condition pertains to the person who received the care.

Payment of expenses must have been made for yourself, your spouse (common-law partner) or a dependent.

A dependent is further defined as your or your spouse’s (common-law partner) child or grandchild or parent, grandparent, brother, sister, uncle aunt, nephew or niece who lived in Canada during the year.

The next condition pertains to the attendant giving the care and that person can be anyone over the age of 18 as long as it is not your spouse or common-law partner.  If you hire an attendant to come into the home, that attendant would become your employee and you would need to remit the appropriate deductions to the CRA monthly.

In some cases, people requiring care are also disabled and have applied for and received the disability tax credit.

If you receive the disability tax credit, the amount of care that you can deduct as a medical expense is limited to $10,000 plus your disability tax credit.

You can claim the entire cost of the nursing home, or the disability amount, but not both.


The Okanagan Business Professionals Networking group (OBPN) meets every Tuesday morning in the back room at the White Spot restaurant at Dilworth. Come join us.


Gabriele Banka is a CPA, CGA and the owner of Banka & Company, CPA. She can be reached at 250-763-4528 or



Just Posted

Lake Country’s old highway piling up with garbage

Cleanup efforts are being planned for garbage found along Pelmewash Parkway

Peachland seniors keeping active this fall

Senior’s group south of Kelowna has plenty going on if you are over 55

Truck fire forces evacuation of Lake Country gas station

No one was injured as firefighters quickly contained blaze at the Shell on Sunday afternoon

Gas leak contained near Lakeshore Road

Ruptured line was quickly contained Sunday morning by Kelowna Fire Department

High winds cause havoc for sailors

Kelowna Fire Department assists boats with broken masts on Okanagan Lake

VIDEO: Sears liquidation sales continue across B.C.

Sales are expected to continue into the New Year

Letter: Questioning thinking of Kelowna city council

Kelowna letter writer says the Green Square development shouldn’t get another chance at council

Rockets raise money for autism

Western Hockey League club hosts third annual Family Day Sunday in Kelowna

Family worries about missing Malakwa woman

Discovery of human remains has put family members on edge

WATCH: 10,000 signatures gained to stop ‘no pets’ rental policy

Pets OK BC said about 1,700 animals were surrendered to the BC SPCA last year due to housing issues

A golden opportunity

Orthodontist offers sweet deal for the pocketbook

Who is Curtis Sagmoen?

The Observer reveals what we know about the man attached to the Silver Creek property where human remains were found

VIDEO: Oprah Winfrey and a celebrities attend ‘B.C. Miracle Concert’

Fundraiser featured Foster, Steven Tyler, The Tenors, Matteo Bocelli, Laura Bretan, Carly Rae Jepsen

Owls win 2nd straight, Bears and Voodoos fall

After going winless last season and getting off to a slow start… Continue reading

Most Read