Can you claim the living costs at a frail care centre as a medical deduction?
23 March 2015
Posted by: Author: SAIT Technical
Author: SAIT Technical
Q: When you go to
a frail care centre (when you are to old to look after yourself), can you claim
a ‘medical’ deduction on the cost to stay there?
My view is that if SARS allow physically impaired
individuals to claim their caring cost, then the same should apply to old
people that are looked after and hospices.
A: Sec 18(1)(b)
of the Income Tax Act (No. 58 of 1962) (hereinafter referred to as ‘the Act’),
before its deletion, provided a deduction for the following:
‘any amounts (other than amounts recoverable by the taxpayer
or his or her spouse) which were paid by the taxpayer during the year of
assessment to any duly registered...
(ii) nursing home or hospital or any duly registered or
enrolled nurse, midwife or nursing assistant (or to any nursing agency in
respect of the services of such a nurse, midwife or nursing assistant) in
respect of the illness or confinement of the taxpayer, his or her spouse or his
or her children, or any dependant of the taxpayer...’ (own emphasis added).
Therefore, sec 18(1)(b) provides for a deduction, provided
that the amounts were paid to a registered nursing home in respect of the
‘illness or confinement’ of the taxpayer, his spouse, children or dependants.
Should the expenses not be paid to a duly registered nursing
home for the ‘confinement or illness’ of a taxpayer, his/her spouse, children
or dependants, no deduction will be allowed in terms of sec 18(1). Therefore
normal frail care costs would not rank as a medical deduction unless it is paid
for the confinement or illness in respect of one of the above individuals to a
duly registered nursing home.
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