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:
Whether couple who participated in HBP in 93 can participate again.
Position:
No
Reasons:
Cannot participate in HBP more than once.
XXXXXXXXXX 952798
November 22, 1995
Dear XXXXXXXXXX:
Re: Home Buyers' Plan ("HBP")
This is in reply to your letter of October 18, 1995, in which you ask whether you can participate in the HBP with respect to a home you wish to acquire. As discussed in the telephone conversation (Duff/XXXXXXXXXX) of October 27, 1995, we are unable to rule on this issue but can provide you with a technical interpretation of the provisions of the Income Tax Act relating to your query. Although we hope the following comments are helpful, please note that they are not binding on the Department.
Withdrawals from your registered retirement savings plan (RRSP) on a tax-free basis are permitted for first-time home buyers in accordance with section 146.01 of the Income Tax Act (the "Act"). In order to be considered a "first-time" home buyer you must not have owned an owner-occupied home in a period ending 31 days before you withdraw the money from your RRSP and commencing January 1 of the fourth preceding calendar year that ends before the withdrawal. For example, if you intend to withdraw money from your RRSP on December 1, 1995, you may not have owned a home you occupied in the period beginning January 1, 1991, and ending October 31, 1995.
In addition, if you have a spouse (either a person to whom you are married or a person of the opposite sex with whom you cohabit in a conjugal relationship as contemplated by subsection 252(4) of the Act) and your spouse owned a home in the period described above and you inhabited that house during your marriage to the spouse, you will not be eligible to withdraw monies under the HBP.
We also point out that if you have already participated in the HBP, you are ineligible to participate in the HBP again.
Enclosed is a copy of Home Buyer's Plan - for 1995 Participants and we draw your attention in particular to the discussion commencing at page 9 ("You have to be considered a first-time home buyer") and to page 7 thereof ("You must not have previously participated").
We trust our comments will be of assistance to you.
Yours truly,
for Director
Financial Industries Division
Income Tax Rulings and
Interpretations Directorate
Policy and Legislation Branch
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