May 20, 2023
All Tax Articles

To tackle the bane of unaffordable housing prices, the federal government has introduced a novel program, which is a RRSP + TFSA combined. In this program, first time home buyers will be able to allocate up to $40K of income to this program, get a tax deduction on the $40K life RRSP (Maximum yearly contribution of $8K) and upon withdrawal of funds for house purchase, like TFSA the funds will not be taxed. The best parts of both TFSA and RRSP are included in this rather creative program, as a savings mechanism to help young Canadians buy a house. One key point to note about this program is that it is not the RRSP home buyer’s plan. Both plans cannot be used simultaneously. Additionally, unlike in a RRSP home buyers plan where funds are borrowed from RRSP, these funds will not have to be paid back to the RRSP program.

This letter summarizes recent tax developments and tax planning opportunities from a third-party affiliate; however, we recommend that you consult with an expert before embarking on any of the suggestions contained in this blog post, which are appropriate to your own specific requirements. Please feel free to get in touch with Lee & Sharpe to discuss anything detailed above, we would be pleased to help.
Douglas K. DeBeck

Hello, my name is Douglas K. DeBeck, I am a partner at Lee & Sharpe.

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