Home Buyers Plan

Forum|Forum|4 years ago
April 24, 2022
2 replies
9 views

Taxpayer pays RPP contributions through work but makes no RRSP contributions separate for 2021 tax season. He owes a yearly HBP payment. Will CRA take the payment from his work contributions or is he screwed?

ProFile (Canada)

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J

JamesCampbell

Level 6

as far as i can see they do not take it from his work one. he has to contribute to a separate one for the plan repayment amount or claim it as income. sorry. hope this helps.

W

WLT007Author

Level 2

Thanks for your response but I found this information:

"To make a repayment under the HBP, you have to make a contribution(s) to your RRSPs, PRPP, or SPP in the year the repayment is due or in the first 60 days of the year after. Once your contribution is made, you can designate all or part of the contribution as a repayment.

To designate your repayment, fill out Schedule 7, RRSP, PRPP, and SPP Unused Contributions, Transfers, and HBP or LLP Activities and enter the amount of the repayment on line 24600 and attach it to your Income Tax and Benefit Return. You have to fill out and send the CRA an income tax and benefit return until you have repaid all of your HBP withdrawals or included them in your income."

8

825752

Level 3

This is a PRPP (Pooled Registered Pension Plan) which is different than a RPP (Registered Pension Plan). The quote you have posted is for PRPP, not a RPP as indicated in the question.

S

sann12

Level 2

Agree with item posted by James, your client HAS TO make a contribution for this HBP, doubt that CRA can take from his employer's RSP Registered Plan. CRA will send the client a statement and will ask for the amount. Know that for a fact, as spent yesterday afternoon reconciling their statement to his "actual" contributions.

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