If you’re a medical marijuana patient in Canada, your medicine is now tax deductible.
That’s right, our neighbors to the north recently clarified the sticky situation between its country’s medical marijuana patients and the Canada Revenue Agency (CRA). In order to be able to claim your cannabis as a medical expense expense, you will have to be authorized by a physician for medicinal use of the plant and have purchased your medicine from a licensed producer. In a letter dated August 24, 2015, the CRA addressed the Canadian Medical Cannabis Industry Association (CMCIA), confirming that patients who participate in the Marihuana for Medical Purposes Regulations (MMPR) “may claim the cost of their cannabis as an allowable medical expense on their income tax.”
In the words of Neil Belot, Executive Director of the CMCIA:
“This is an important step in acknowledging the legitimacy of the way patients use medical cannabis, to help manage the symptoms of a range of health conditions. We have been working with the CRA and the Department of Finance for several months to clarify this issue, and we’re extremely pleased that cannabis regulated by Health Canada has been recognized as an allowable tax expense. It’s very good news, and will help make the use of cannabis as medicine more accessible and affordable for patients.”
Medical marijuana has been legal in Canada since 2000, but received an overhaul that took effect on April 1, 2014.
While official amendments to the income tax laws in Canada have yet to be made recognizing the MMPR, the CRA has opened the door by not prohibiting the tax deductions, rather than clearly allowing it. In a statement by the CRA it said they “will not disallow eligible medical expenses claimed for the purchase of medical marihuana allowable under these new regulations.”
O, Canada. Stay DOPE.