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.
Principal Issues:You can not participate in home buyers plan if you owned a home in a specific period. Does sale of the home on divorce shorten the period?
Position TAKEN:No
Reasons FOR POSITION:routine application of proposed law.
XXXXXXXXXX 5-942001
Attention: XXXXXXXXXX
August 31, 1994
Dear Sirs:
Re: Home Buyers' Plan
This is in reply to your facsimile of August 5, 1994, in which you requested clarification of the Home Buyers' Plan. In particular, you asked if a person who owned a home in 1991 but sold it as a consequence of a divorce could participate in the Home Buyers' Plan now or would he or she have to wait for five years from the date of sale.
In accordance with the draft legislation on the Home Buyers' Plan released on March 28, 1994, a person can not participate under the proposed new Plan after March 1, 1994 if they owned an "owner occupied home" at any time in the period beginning January 1 of the fourth preceding calendar year ending before the date an amount is withdrawn under the plan and ending 31 days before they receive the withdrawal. A person can also not participate under the program if their spouse owned an owner occupied home in this same period and the person lived in the home at any time while they were married. The proposal does not contain any provision for limiting this period because an owner occupied home was sold as a consequence of a marriage breakdown. Accordingly, the earliest a person could participate under the proposed plan would be January 1, 1996 if they last owned an owner occupied home in 1991.
The above comments are based on our understanding of the draft legislation as we expect it to apply in general and may or may not apply to the circumstances of a particular case. They do not form an advance income tax ruling and they are not binding on the Department.
Yours truly,
for Director
Financial Industries Division
Rulings Directorate
Policy and Legislation Branch
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