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

Severe thunderstorm watch issued for the Okanagan

Possible rainfall rates of up to 25 milimetres in one hour.

STEM summer camps focus on math, science learning

Programs offered at UBCO campus encourage hands-on fun

Futures court stars make stop in Kelowna

Kelowna Futures Tennis Tournament goes June 25 to July 1 at Parkinson Rec Centre courts

Blasting warning for West Kelowna

West Kelowna permit issued for blasting to start this week

Glenrosa residents asked to secure garbage

WildSafeB.C. issues warning about bears

VIDEO: Vernon-area students read for rank

RCMP visited JW Inglis on Wednesday as part of the Read with Me and the RCMP program.

Pippins halt Falcons’ winning streak at 3

YAKIMA, WA. – The Kelowna Falcons had their three-game West Coast League… Continue reading

FIFA World Cup weekly roundup

Host nation Russia remains unbeaten in Group A, tied with Uruguay

Star Gazing: Using a large telescope

Ken Tapping, astronomer with the National Research Council’s Dominion Radio Astrophysical Observatory

Trudeau says he can’t imagine Trump damaging U.S. by imposing auto tariffs

New tariffs on Canadian autos entering the U.S. would amount to a self-inflicted wound on the U.S. economy

Temperature records broken across B.C., again

The first heat wave of the season went out with a bang across the province

Canada’s first national accessibility law tabled in Ottawa

The introduction of the Accessible Canada Act marked a key step towards greater inclusion

Police chief calls for mass casualty plan in Saskatchewan after Broncos crash

Former Saskatoon police chief Clive Weighill said the office was tasked with creating such a plan 13 years ago but none exists

U.S. schools mum on ties to doc in sex abuse inquiry

A now-dead doctor accused of sexual misconduct acted as a team physician at other universities

Most Read