Question about repay Home Buyer Plan RRSP

[LoveRFD]

I'm wondering if I repaid say $500 to the money I borrowed from RRSP when I first bought my house, how would CRA know that the $500 RRSP I bought was for repay not new contribution? TIA.

[Wiseman]

You would file it on your income tax, I believe on the schedule 7 sheet.

[LoveRFD]

You would file it on your income tax, I believe on the schedule 7 sheet.

Thanks for your quick reply. I didn't see that schedule 7 sheet in Studio Tax software, anybody knows if it's in there? Or should I buy other software like ufile to be able to file schedule 7?

[LoveRFD]

Never mind, I find the solution in Studio Tax.

[dutchca]

There is really no benefit to repaying the amount you borrowed quicker than the 15 year maximum. The only thing it does is reduce your current year RRSP contribution.

If your minimum is $500, by al means - but if it is less, only claim the min. repayment IMO.

[webworm]

Your forgetting that the longer you take to repay those funds back into your RRSP that you are also losing out on the interest compounding of those funds.

[seshwan]

Your forgetting that the longer you take to repay those funds back into your RRSP that you are also losing out on the interest compounding of those funds.

He didn't forget that, just telling you not to repay the whole amount for the HBP, but to repay the minimum and claim anything over that as a contribution.

[pogs]

He didn't forget that, just telling you not to repay the whole amount for the HBP, but to repay the minimum and claim anything over that as a contribution.

sorry, were you saying something...nice avatar.

[knapper]

He didn't forget that, just telling you not to repay the whole amount for the HBP, but to repay the minimum and claim anything over that as a contribution.

If your income is growing and there is a likelihood that you will move up tax brackets, you are better of maxing out the repayment now so that the later payments go against the higher tax rates.

[nuch]

Does the repayments work the same way as a contribution..

i.e. you can only repay a maximum amount every year?

Further example.

If I withdraw 20K from my RRSP on the HBP, can I repay 10K the first year back into my RRSP, thus only owing another 10K?

(hope I didn't confuse anyone)

[sslinn]

Absolutely!! You can pay as much or as little back as you want, it is your money. Small consequences for not paying the minimum back.

You have a two year grace period where you don't have to pay any back. After that you are required to pay back 1/15th of what you took out. Any portion of the 1/15th you don't pay back you will be taxed on.

[nuch]

Absolutely!! You can pay as much or as little back as you want, it is your money. Small consequences for not paying the minimum back.

You have a two year grace period where you don't have to pay any back. After that you are required to pay back 1/15th of what you took out. Any portion of the 1/15th you don't pay back you will be taxed on.

If I pay say 5/15th right off the bat in the first 2 years, does that mean I do not have to contribute for the next 3 years after that? (since I have 5/15th paid up already?)

Thanks for clarifying this process.

[sslinn]

I am not sure of that, but if you have the room you could pay back the 5/15ths and only claim 1/15th per year if you have the room for the over contribution. Here is a link to the CCRA guide:

http://www.mortgagewyse.ca/download/hbpbooklet.pdf

This should answer all of your questions.

[EchoAngel911]

http://www.cra-arc.gc.ca/tax/individ...bp/menu-e.html

straight from the government

[dolphie]

Thanks for your quick reply. I didn't see that schedule 7 sheet in Studio Tax software, anybody knows if it's in there? Or should I buy other software like ufile to be able to file schedule 7?

figured i'd hijack this thread.
i'm using quicktax and can't seem to find the option for 'schedule 7' or hbp replayment either.
How/where the heck do i enter this on quick tax web, anyone know?