Weekly Tax Tips
Remember to make your required Home Buyers’ Plan repayment by March 2, 2009
21 Jan 2009
If you participated in the Home Buyers’ Plan (HBP) prior to 2007, you have a repayment due in the 2008 taxation year. A repayment made on or before March 2, 2009 (as March 1, 2009 falls on a Sunday) will be considered to have been made in the 2008 taxation year. A repayment is made by making a regular contribution to your RRSP. When you file your 2008 tax return, you’ll have to complete Schedule 7. On this form, you’ll designate that the RRSP contribution is to be applied as an HBP repayment and is not a deductible contribution.
If you have already made RRSP contributions during 2008, you can designate an amount to cover your required repayment. The CRA sends an HBP Statement of Account each year with your Notice of Assessment or Reassessment.
This tax tip is a publication of BDO Dunwoody LLP on developments in the area of taxation. This material is general in nature and should not be relied upon to replace the requirement for specific professional advice. The information in this tax tip is current as of 21 Jan 2009.
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