Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the CRA.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ARC.
Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the CCRA.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ADRC.
Principal Issues:
Can an individual withdraw an amount under the Home Buyers' Plan in a taxation year and, in that same taxation year, designate an amount as a repayment of an eligible amount under subsection 146.01(3) of the Act?
Position: Yes.
Reasons:
No provision in the Act that disallows a repayment in the same year as there is a withdrawal under the Home Buyers' Plan.
XXXXXXXXXX 2002-013823
M. P. Sarazin, CA
June 5, 2002
Dear XXXXXXXXXX:
Re: Home Buyers' Plan
This is in reply to your letter of May 2, 2002, requesting our general views regarding the timing of the repayment required under subsection 146.01(3) of the Income Tax Act (the "Act"). Specifically, you ask where an individual withdraws an amount in a taxation year out of his or her registered retirement savings plan ("RRSP") under the Home Buyers' Plan, can the individual designate an amount that was contributed to the RRSP in that same year or within 60 days after the end of the year under subsection 146.01(3) of the Act?
Subsection 146.01(3) of the Act limits the amount that may be designated as a repayment of an eligible amount to the lesser of
(i) the amount contributed in the particular taxation year or within 60 days after the end of the year to the individual's RRSP; and
(ii) the amount, if any, by which the total of all eligible amounts received before the end of the year exceeds the total of all amounts designated by the individual under subsection 146.01(3) for preceding taxation years and all amounts included in the individual's income under subsection 146.01(4) or 146.01(5) for a preceding taxation year.
There is no provision that would disallow an individual from making a designation under subsection 146.01(3) of the Act in respect of a contribution made by the individual to his or her RRSP in the same year that the individual withdrew the eligible amount under the Home Buyers' Plan. Consequently, an individual may withdraw an eligible amount under the Home Buyers' Plan in a taxation year and the individual may designate an amount contributed to his or her RRSP in that same year as a repayment under subsection 146.01(3) of the Act.
We trust that the above comments will be of assistance to you.
Yours truly,
Roberta Albert, CA
for Director
Financial Industries Division
Income Tax Rulings Directorate
All rights reserved. Permission is granted to electronically copy and to print in hard copy for internal use only. No part of this information may be reproduced, modified, transmitted or redistributed in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, or stored in a retrieval system for any purpose other than noted above (including sales), without prior written permission of Canada Revenue Agency, Ottawa, Ontario K1A 0L5
© Her Majesty the Queen in Right of Canada, 2002
Tous droits réservés. Il est permis de copier sous forme électronique ou d'imprimer pour un usage interne seulement. Toutefois, il est interdit de reproduire, de modifier, de transmettre ou de redistributer de l'information, sous quelque forme ou par quelque moyen que ce soit, de facon électronique, méchanique, photocopies ou autre, ou par stockage dans des systèmes d'extraction ou pour tout usage autre que ceux susmentionnés (incluant pour fin commerciale), sans l'autorisation écrite préalable de l'Agence du revenu du Canada, Ottawa, Ontario K1A 0L5.
© Sa Majesté la Reine du Chef du Canada, 2002
Email this Content