Sentences with phrase «hbp loan tax»

However, to keep the HBP loan tax - free you must contribute at least a minimum repayment portion to your current RRSP account in each calendar year and then declare this amount on your income tax form.

Not exact matches

As a general rule, the Home Buyers» Plan (HBP) is a great way to dip into your RRSP savings for a tax - free loan that can be used as a down payment on a home.

Since I can't make a payment on the HBP loan this year, how will I be taxed?

You would then have enough for a $ 27,000 down payment on a home (the HBP loan plus your second - year tax rebate) and more than $ 6,400 left in your RRSP, not including any investment gains that may have accrued.

If you choose not to repay the HBP loan then the government will treat the amount you withdrew from your RRSP as income and tax you on it.

Dear Loyal Reader from Nova Scotia: If «on to something» means the government treating the HBP loan that your friend withdrew from his RRSP as income — and having to pay tax on that income — then, yes, he's on to something.

When you look at your cash flow, if you really can't make it work to repay both of your HBP loans, then focus on your husband's portion of the loan first because he is in the higher tax bracket.

But rates are at historic lows, so it makes more sense to pay back your HBP loan to avoid the tax hit instead of trying to get around the 3 % to 5 % interest you're paying on your mortgage.