|
![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() |
Filing Your Return -> Real Estate ->RRSPs -> Report HBP and LLP PaymentsMake Sure You Report Repayments to RRSP Home Buyer's Plan or Lifelong Learning Plan!Income Tax Act s. 146.01(3), 146.02(3)If you have made repayments to your RRSP for the Home Buyer's Plan (HBP) or Lifelong Learning Plan (LLP) from January 1 of the taxation year to March 1 of the following year (in the year or within 60 days after the end of the year, same as the deadline for RRSP contributions), you must complete Schedule 7 on your income tax return as well as the HBP or LLP worksheet. If you fail to designate the RRSP payments as repayments of HBP or LLP, Canada Revenue Agency (CRA) will add to your income the minimum payment that was required for the year. Your RRSP contributions will reduce your unused RRSP deduction room carried forward, if they are deducted as regular RRSP contributions. An RRSP contribution made in the year of the HBP withdrawal, even prior to the HBP withdrawal, can be designated as a repayment of the HBP. If you want to designate more than the minimum required amount of HBP or LLP, you can do so, but only up to the amount of your RRSP contributions made in the taxation year or within 60 days after the end of the taxation year. If you did not make any RRSP contributions in this time, then you can only designate the minimum required payment as the amount to be added to your income for the year for the HBP or LLP. If you have not completed Schedule 7 properly in past years where you have made contributions to your RRSP, you should file a request to adjust your previous returns. See the article on changing your tax return once you have already filed it. For more information on the Lifelong Learning Plan, see Canada Revenue Agency topic Lifelong Learning Plan (LLP). Canadian Tax Calculator - HBP and LLP RepaymentsIf you are using the Canadian Income Tax and RRSP Savings Calculator, payments into your RRSP for the HBP or the LLP should not be entered into the calculator. However, if you have not made the minimum required payment for either the HBP or the LLP, then any shortfall from this amount must be entered as income - this can be entered on the "other income" line. See also: RRSP Home Buyer's Plan - Use Your RRSP to Help Buy or Build a Home Tax Tip: Make sure you complete Schedule 7 if you have made repayments to the HBP or LLP, otherwise you lose RRSP deduction room.
Revised: May 21, 2020 |
Copyright © 2002 Boat Harbour Investments Ltd. All Rights Reserved. See Reproduction of information from TaxTips.ca Facebook
| Twitter
| Monthly
Newsletter Sign-up
What’s
New E-mail Notification
RSS News Feed |