Home Buyers' Plan (HBP)Prior to March 20, 2019, an individual could withdraw from an RRSP a maximum of $25,000 in a calendar year to buy or build an eligible home without paying tax on the withdrawal.
As of March 20, 2019, and for the following years the federal government increases the maximum amount to $35,000 that you can withdraw under the HBP.
As a transitional measure, if your HBP withdrawal was made between January 1, 2019 and March 19, 2019 inclusive, and you have met the current requirement that neither you nor your spouse or common-law partner have owned the qualifying home for more than 30 days before making the final withdrawal in 2019, you may withdraw additional funds after March 19, 2019, provided that the total of all your withdrawals does not exceed the new maximum amount of $35,000.
The amount withdrawn from an RRSP under the HBP will not be included as income.
The financial institution will issue you a T4RSP with the amount entered in Box 27 of the slip.
To enter this amount, follow the procedure below:
1. On the "Left-side menu on the Interview tab", select "Interview setup".
2. On the screen to your right, go to the "Pension" group, check the box for "Pension income. Other income and split pension income (T4A, T4A(OAS), T4A(P), T4A-RCA, T4RSP, T4RIF, T1032)" and click "Next" at the bottom of the page.
3. Return to the "Left-side menu on the Interview tab" and select the line "T4A and pension income".
4. Then, on the right-hand side page, choose "T4RSP - Income from Registered Retirement Savings Plan (RL-2)".
5. Enter the amount in "Box 27 - Home buyer's plan withdrawal - HBP home address same as mailing address (RL-2 box O)" or in "Box 27 - Home buyer's plan withdrawal - HBP home address different (RL-2 box O)", as applicable.
Amounts withdrawn under the HBP must be repaid to an RRSP within a maximum of 15 years, beginning as early as the second year following the year of withdrawal.
The minimum amount to be repaid under the HBP will be indicated on the latest notice of assessment issued by the CRA
The CRA will issue a Notice of Assessment in the year preceding your repayment, indicating the amount owing under the HBP.
For more information, please consult the following CRA link:
ID: 20191218091759DEX.xml
Webpage: KPA310-20191218091759DE.htm