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.
October 7, 1992
Business & Property Income Deferred Income
and Exempt Organizations Section Plans Section
Business and General Division Financial Industries
Division
Attention: Ernie Wheeler D. Duff
957-8953
- 7- 922992 RRSP Home Buyer's Plan
This is in response to your question regarding the definition of eligible amount in proposed subsection 146.01(1), and specifically the requirement that an individual must intend to commence using the home as a principle place of residence.
An eligible amount is defined in subsection 146.01(1) as an amount received at a particular time by an individual from an RRSP where, among other things, the individual has indicated the qualifying home he intends to begin using as a principal place of residence within a year of acquisition, the individual has, at the time, entered into a written agreement to acquire or construct the home, and the individual acquires the home by October 1, 1993.
As indicated above one of the requirements is that the individual intends using the house as a principal place of residence and does not require him to actually use it as such for a minimum length of time or at all. Where an individual withdraws an amount from his RRSP that qualifies as an eligible amount, and for some reason does not use the home as a principal place of residence, there is no provision that retroactively disqualifies the
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withdrawal from being an eligible amount simply because the home was not used as originally intended.
If he does not use it as a principal place of residence the reason for not using it as such might be dealt with in a related provision. If the individual acquires another house instead it could qualify as a replacement property, also defined in 146.01(1), thereby satisfying the requirements for an eligible amount. Subsection 146.01(2) provides special rules for the situations where an individual either acquires a qualifying home late, or never acquires a qualifying home. In those situations referred to therein the individual is deemed to have acquired the qualifying home on September 30, 1993. Also, the definition of excluded withdrawal deals with situations where the individual dies or becomes a non-resident.
for Director
Financial Industries Division
Rulings Directorate RRSP Home Ownership Savings Plan
146.01(1) Eligible Amount is
defined as an amount
received at a particular
time where:
- (a) "received ... pursuant to the written request of the individual in prescribed form in which the individual sets out the location of a qualifying home that the individual has begun, or intends not later than one year after its acquisiton by the individual to begin, using as a principal place of residence"
in addition the other conditions must be satisfied in the definition:
(b) the individual has at the
time entered into a
written agreement for the
acquisition or
construction of the home.
(c) the individual acquires
the home (or a
replacement property)
before Oct. 1, 1993,
146.01(1) Replacement Property is
another qualifying home
that the individual
agreed to acquire or
construct after he
requested a withdrawal
for the first qualifying
home.
- 146. 01(2)(c) Provides special rules where an individual has not acquired a qualifying home by October 1, 1993.
Notes: The withdrawal must be for a qualifying home that the individual intends to use as a principal place of residence within 1 year of its acquisition. Before receiving the amount out of the RRSP the individual is required to have entered into an agreement in writing for the purchase of the qualifying home or with reqpect to its construction."
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© Her Majesty the Queen in Right of Canada, 1992
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© Sa Majesté la Reine du Chef du Canada, 1992
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