Will the CRA accept a T1-Adj that changes medical expenses in the year-of-death from 12-months to 24-months, or will it be denied as retroactive tax planning?

I am preparing T1-Adjustments for my deceased Mother's 2013, 2014 and 2015 returns.

Her tax preparer did not claim her full-time-care nursing home fees as medical expenses.  My T1-Adjustments will correct that oversight.

The CRA permits medical expenses for a 24-month period ending on the date of death.  Based on this I’m thinking of filing a T1-Adj reducing her 2014 medical expenses to zero so that they can be included in the 2015 T1-Adj that will include the 24-month claim.   

My question... Will the CRA approve the 2014 and 2015 adjustments as described, or are they more likely to disallow them as retroactive tax planning?


Great question!

Because it's a close call between retroactive tax planning and maximizing credits, it's worth doing the adjustment. 

Was this answer helpful? Yes No

No answers have been posted

More Actions

People come to TurboTax AnswerXchange for help and answers—we want to let them know that we're here to listen and share our knowledge. We do that with the style and format of our responses. Here are five guidelines:

  1. Keep it conversational. When answering questions, write like you speak. Imagine you're explaining something to a trusted friend, using simple, everyday language. Avoid jargon and technical terms when possible. When no other word will do, explain technical terms in plain English.
  2. Be clear and state the answer right up front. Ask yourself what specific information the person really needs and then provide it. Stick to the topic and avoid unnecessary details. Break information down into a numbered or bulleted list and highlight the most important details in bold.
  3. Be concise. Aim for no more than two short sentences in a paragraph, and try to keep paragraphs to two lines. A wall of text can look intimidating and many won't read it, so break it up. It's okay to link to other resources for more details, but avoid giving answers that contain little more than a link.
  4. Be a good listener. When people post very general questions, take a second to try to understand what they're really looking for. Then, provide a response that guides them to the best possible outcome.
  5. Be encouraging and positive. Look for ways to eliminate uncertainty by anticipating people's concerns. Make it apparent that we really like helping them achieve positive outcomes.

Select a file to attach:

Do you still have a question?

Ask your question to the community. Most questions get a response in about a day.

Post your question to the community