This is a multi-part message in MIME format.
---------------------- multipart/alternative attachment
Sent: Wednesday, May 21, 2003 6:39 PM
To: [email protected]
Subject: HBP
I have purchased my first condo 1 ½ yrs ago and now want to buy a
second condo and rent the first. I have never contributed to an
RRSP and now want to contribute and use the RRSP as a down
payment to purchase the condo which I will live in as a
principal residence. Is this a good idea? How long does the RRSP
have to be in exsistence before I can pull it out for the Home
Buyers Plan?
Thanks
G XXXXXX XXXXX
----------------------------------------------
david ingram replies:
To participate in the Canadian Home Buyers' Plan you have to be a
first time buyer. From your question, it appears that you are
living in the first condo now.
To quote from the government's own pamplhet RC4135
"You are not considered a first-time buyer if, at any time during
the period beginning Jan 1 of the fourth year before the year of
withdrawal and ending 31 days before your withdrawal, you or your
spouse or common-law partner owned a home that you occupied as
your personal residence.
Therefore if you want to buy a new home in 2003, neither you nor
your spouse can have occupied a building you or your spouse owned
during the period Jan 1, 1999 and ending 31 days before you were
to take the money out in 2003.
--------------------------------
However, if you were not occupying a building you own, the second
part of your question is as follows:
Basically, if you put money into the RRSP within 89 days of your
withdrawal, you might not be able to use it as a deduction.
As the booklet says: "You cannot deduct trhe amount, if any, by
which the total of your contributuions to an RRSP during the 89
day period just before your withdrawl from that RRSP, is more
than the fair market value of that RRSP after your withdrawal".
(I don't know what it means either. A good rule of thumb is to
arrange your affairs so that you make all contributions at least
90 days before you make your withdrawal.)
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"
---
Outgoing mail is certified Virus Free.
Checked by AVG anti-virus system (http://www.grisoft.com).
Version: 6.0.483 / Virus Database: 279 - Release Date: 5/19/03
---------------------- multipart/alternative attachment
An HTML attachment was scrubbed...
URL: http://lists.centa.com/mailman/private/centapede/attachments/8ef1a4da/attachment.htm
---------------------- multipart/alternative attachment--
What's Related