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We now own a house can we use RRSP to purchase a new house, a lot
to build a house?
Can one spouse contribute 40,000.00 or does each have to
contribute
20,000.00.
Thank you.
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david ingram replies
First, if qualified, each of you can withdraw up to $20,000 - no
one can take out more than $20,000.
If you already own a house you live in, the simple and easy
answer is no!
However, to elaborate for others who may read this in a Q & A
form,
To qualify to withdraw monies from an RRSP in 2003 to buy a home
under the Home Buyers Program, neither spouse can have owned and
occupied a home for a period from January 1 of the fourth year
before the withdrawal up until 31 days before the withdrawal.
Therefore, if you were going to withdraw on July 1, 2003, neither
you nor your spouse can have owned and occupied a home from Jan
1, 1999 to May 29, 2003.
After withdrawal (fill in form T1036) you have until Oct 1, of
the NEXT year to buy build and occupy your new house.
There are some exceptions to the October 1 rule when you have
paid the contractor more than you withdrew or you bought a place
with a tenant in place and you had to wait for the tenants lease
to expire.
Another exception to the 4 year rule is that you can withdraw
money from YOUR RRSP when you are disabled and use the money to
buy or build a house which is adapted to your needs or more
accessible OR you withdraw funds from your RRSP to buy a home for
a related disabled person OR you withdraw funds form your RRSP to
GIVE to a Disabled person related to you by blood, marriage or
adoption.
For more detailed information go to:
http://www.ccra-adrc.gc.ca/E/pub/tg/rc4135/rc4135-01e.pdf
And read the CCRA pamphlet "Home Buyers' Plan".
david ingram
david ingram - [email protected]
108-100 Park Royal South
West Vancouver, BC, CANADA, V7T 1A2
(604) 913-9133 - (604) 913-9123 www.centa.com
Cell is (604) 657-8451 (10 AM to 10 PM seven days a week)
US / CANADA / MEXICO
Working Visa and Income Tax Specialists
Be ALERT, the world needs more "lerts"
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