RRSP question

[Rocketo]

I had a question...

im looking at buying a home and the thing is it closes next year in feb 2009. Question is if I use my RRSP now for the downpayment...will my revenue for 2009 get screwed? a broker told me it would mess up my taxes..someone educate me

[mystical2003]

http://www.cra-arc.gc.ca/tax/individuals/topics/rrsp/hbp/conditions/deadline-e.html

That link will give you all the info you need. By the sounds of your closing date you will be fine and it will not effect your taxes this year. You have until October of the year after you withdraw to buy or build a house. And even if you have delays if you have entered the agreement by Oct of the year after to build a house then you will get an additional year extension.

With your house finishing in Feb, even with delays you should be done by Oct.

[Wonderdollar]

I had a question...

im looking at buying a home and the thing is it closes next year in feb 2009. Question is if I use my RRSP now for the down payment...will my revenue for 2009 get screwed? a broker told me it would mess up my taxes..someone educate me



When you withdraw RRSP under Home Buyer Plan then the withdrawal is not added to your income so there is no way it will effect your taxes.

As the previous poster has mentioned that if you withdraw RRSP this year then your eligible house must be bought before October of next year so you are fine that way as well. Read the link provided by the previous poster and it would clear most of your doubts.

[bfr]

make sure that you have at least the amount of money that you will be withdrawing in the RRSP for at least 90 days before you make your withdrawal.

If you don't, the difference would be added to your income. There is a pdf summary on the CRA website that includes an explanation of this.