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 Department. Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle du ministère.
XXXXXXXXXX 5-923858
D. Duff
(613) 957-8953
March 5, 1993
Dear XXXXXXXXXX Re:Registered Retirement Savings Plan ("RRSP")-Home Buyers' Plan
This is in reply to your letter of December 1, 1992, to the London District Office, Revenue Canada Taxation, which was forwarded to us for reply. We apologise for the delay in our response.
The RRSP Home Buyers' Plan was extended pursuant to the Economic and Fiscal Statement of December 2, 1992. Withdrawals under the plan can now be made up to March 1, 1994 and the deadline for acquiring the house is September 30, 1994. However, for those who have withdrawn funds prior to March 2, 1993, the deadline remains at September 30, 1993.
An individual cannot participate in the plan to acquire a house that either he or his spouse had acquired more than 30 days before making the withdrawal. Where an individual is building his house, the Department considers it to be acquired at the time it becomes habitable. Consequently, where an individual already owns the land he can participate in the plan to construct a house on it.
Where an individual fails to acquire a house by the required deadline, either September 30, 1993 or September 30, 1994, depending on when the withdrawals were made, there are relieving provisions under which he is deemed to have acquired it by that time. If, before the deadline, he has entered into a written contract to acquire the house, does acquire it within one year from the deadline, and remains resident in Canada during this time, he is deemed to have acquired it by the deadline. Also, if he makes payments equal to the amount of the withdrawal to an arm's length person for the construction of his house, after making his first withdrawal, and such payments are made after the time of the first withdrawal and before the deadline, then he is deemed to have acquired the house by the deadline.
We trust this is satisfactory.
Yours truly,
for Director Financial Industries Division Rulings Directorate
cc: D. Leblanc, 3-2, London District Office
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© Her Majesty the Queen in Right of Canada, 1993
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© Sa Majesté la Reine du Chef du Canada, 1993
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