ACCOUNTANT EXPLAINS New First Home Savings Account FHSA (starting April 1, 2023)

[@GabrielleTalksMoney]

I wanted to clarify that there has been revised legislation so you can now withdraw from both your RRSP and HBP - refer to more information here www.canada.ca/en/revenue-agency/services/tax/individuals/topics/first-home-savings-account/withdrawing-money-from-your-fhsa.html

[@JimSteve-qj7co]

What an interesting content i must say! I'm a father of two who bought a house last year. For me, it was a major turning point! In addition to feeling the effects of the economic downturn, I'm lucky enough to enjoy a respectable monthly income from wise investments that I've made. I have therefore meticulously prepared for my retirement following my children's graduation from college.

[@JanePalmer-bg8tb]

Wow, very intriguing! Currently, I am looking for investing ideas or recommendations. Earlier this year, I hesitated and did not take any action till now. However, I am motivated to try something new because I am quite open to other investing opportunities. I want to retire in my forties or fifties. I sincerely wish I could achieve what you've accomplished, and I believe it will happen.

[@JimSteve-qj7co]

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[@JanePalmer-bg8tb]

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[@JimSteve-qj7co]

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[@JimSteve-qj7co]

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[@FrankHuynh]

Thanks - I was way too lazy to read the FHSA online so I came to this lol.

[@vbosch21]

There actually isn't a withdrawal limit to the FHSA. 40k is the contribution limit, if invested properly and left for a number of years you could withdrawal 50k - 60k!

[@henrik4521]

And what about people who wants to buy a house this or next year?

[@rezaolad543]

FHSA contribution is deducted from gross employment income (salaries employment) but not net income which results in taxable income: Total income - Allowable deduction (FHSA & RRSP)= Net Income

[@lyg]

I like how the fhsa can be transferred to your rrsp if you don't end up using the fhsa towards buying a house. I don't see a negative towards going for the fhsa if your other registered accounts are full, is this a valid way of thinking?

[@yanniergonzalez9701]

Hey, great video. Thanks for sharing. I have a question, though. Could I contribute the 8000 dollars I get for 2023, and then withdraw and use that money for purchasing a home on the very same 2023,and still get the tax deduction when I file in 2024?

[@kanantony4423]

Good question. Wondering the same thing

[@vickilung5203]

Thank you! Super clear & helpful summary of the FHSA 😊

[@sauravlahiry6951]

hi gabrielle sis, came to know so much. please create a video regarding the savings account for 2nd home.

[@Pokerbummer]

Great vid, can you please help clarify one point I’ve been struggling to understand. Issue - RC725 form requires details of the home to make an eligible withdrawal which takes 3-5 business days to process. Meanwhile earnest money deposit has to be done within a day or 2 at max of finalizing the agreement. Which means you won’t be able to pay EMD using FHSA funds. So how can someone circumnavigate this issue. Possible solution- Can I pay EMD using cash in my chequing account and later add that same amount to FHSA account and withdraw when I close this giving me enough time to make an eligible withdrawal? In this case would I be eligible for tax deduction on the entire amount in my FHSA? Question 2- Do I have to prove later to CRA where I used the funds from FHSA, like submit all receipts be it down payment, closing costs, renovations etc? Thank you so much whoever takes the time to understand and respond to this. ❤ it’s an issue all of us will face when withdrawing

[@MariaGarcia-gv8hj]

Thanks for increasing my knowledge in personal finance, I recently subscribed to your channel. I want to give a big shout-out to all those working tirelessly to earn a living and build wealth during this recession. My husband and I are both retired and debt-free, and we're living smart and frugal with our money. Despite the recession, we're still earning passive income thanks to our savings and investments in the financial market. Investing lifestyle has enabled us to earn a steady monthly income through passive means, and we're grateful for it."""

[@MariaGarcia-gv8hj]

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[@MariaGarcia-gv8hj]

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[@clintonjames8586]

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[@nicolefisher1723]

Hi, I assume that the answer is yes, but if two first time home owners buy a house together, can we both use the HBP (35k each) and the new account (max 40k each)?

[@mohammedosman88]

I think yes, so total is CAD 75K for each partner.

[@AudreyQuitayen-cu1se]

It was mentioned that qualifying withdrawals from FHSA must be a primary residence for 1 year, does it mean that you can use some space for rental income in this house after 1 year? Thanks.

[@joycoso1453]

An accountant says "Net Income" as she is more technical, others you would hear "taxable income" like a banker would say like myself(lol). I understand there's still Division C deduction to arrive taxable income.

[@SeanKalra]

Thanks for sharing all the information! Found it really helpful. I had a question regarding the withdrawal, can you transfer the money to your personal account at the time of purchase or does it has to go directly to the seller/lawyer to cover the deposit and expenses?

[@lovedeepsingh3684]

Hello, not sure if you will see this but awesome video. I wanted to ask few things Lets say if i am closing a house on Aug 2024 and have a written aggressive as of today, June 4. Can i put in request to withdraw money from FHSA today or do i have to wait closer to closing? OR what i understand, as long as house is closed before 1 October 2025, i should be good? Secondly, me and partner has to withdraw the money at same time or it can be different? Both of our names will be on the house agreement and we both have separate FHSA accounts and meet the criteria? Thank you so much

[@YG-qe2po]

Thanks for your information I have a question, my husband has a job and opened an FHSA for 8k, does it make sense if I open FHSA too? We have a plan to buy a first house next year.

[@sydcape1]

Super clear and crisp. Great Presentation Gabrielle!

[@longphan501]

Hi Gabrielle, I have a question hope you can help, I put 8K in my FHSA last year and I plan to buy a condo this year. My question is, can I put another 8K in FHSA now and withdraw it after 30 days, will my tax be deductible for this year as well or I have to keep FHSA fund for certain period?

[@michaelrobinson5268]

Can I use the FHSA and the HBP together? Or does you have to choose one of the other?

[@timcampbell6008]

hmm lets say I contribute to a FHSA and max it at 40 and donot buy a house, I can close it and transfer my amount tax free into my RRSP? Seems to good to be true. It grows tax free and while it would be taxable when I take it out of the RRSP it allows me to pay less tax on my salary.

[@mykotron]

So is saving into an FHSA better than saving for HBP with RRSPs?

[@kaushalBhavsar-m8w]

Hi, Making a qualifying withdrawal "You must not have acquired the qualifying home more than 30 days before making the withdrawal" Must have to be on your down-payment? Can be withdrawal after your closing date?

[@GenXTechh]

If you live in the house for the first year, can you have a boarder?

[@MaxStewart03]

Hi I opened an FHSA in 2023 with Wealthsimple, then 2024 I opened one with RBC. Am I now able to contribute 16k to my FHSA in my RBC account?

[@philipschofield7105]

So if you qualify, the withdrawals are not taxed, but if you dont, they are? So you work, get taxed, then contribute to this or rrsp, withdrawal and get taxed again. Then pay tax when you spend your, now, twice taxed money on a house, to now pay taxes on the house and the land its on. We live to be taxed

[@Evan-qh3kq]

Definitely one of the better videos covering the new account, thanks.

[@moneytimecoaching]

Tell me what you think about mine its coming soon!

[@daviddrouillard3534]

Great information. More detail than other videos. Thx.

[@TheVinceVoice]

Wondering if I own a rental property but don't own my principal residence (renting) would I still be considered a First Home Buyer for this plan?

[@andrewf9557]

No you wouldn't.

[@armiejose5232]

Transfer from RRSP to FHSA, should i have to pay it back? Just like when you used it to HBP. Thanks

[@AW-gj4ji]

I think you forgot to mention, it is possible to combine HBP together with FHSA. Unless, they modified that part out.

[@mackschumm6585]

Is this true? I can’t find the answer to this anywhere official. I bought a preconstruction in 2023 (still not completed) with HBP and not sure if I can start saving in a FHSA now as well

[@Emilyvynguyen]

Hi, work permit holder can also open FHSA right? Thank you

[@lewismak266]

What if you open a FHSA, but purchase a home without it. Me and my partner have a down payment already, but are thinking of opening one for the tax savings

[@kanadajin-r5b]

5:08 What if you live in the home but rent out the basement? Or what if I want to use the FHSA to buy a duplex so that I can live in one of the units and rent out the other?

[@NatashaVincent]

This is my question as well.

[@codybaley6266]

I am not a financial expert or a lawyer, but my interpretation is: All you need to do is to qualify for the account and follow the rules of the account. You can do what you want with your new home, provided you are following all laws. EG: some condo owners may follow rules of the "Homeowners Association" for that condominium, and some duplexes may have the legal definition as a condo. HOA are less powerful in Canada than the USA, but make sure to ask your realtor about that stuff when looking at new homes.

[@hannaduncan152]

I bought a home in June 2023, is there any way to work retroactively and still benefit from this?

[@angers5717]

Great video ! Is a duplex eligible for a FHSA withdraw ? The CRA website has a vague definition or qualified homes and it could be interpreted both ways....Any hindsight ? *apartments in duplexes, triplexes, fourplexes, or apartment buildings*. Some people argue that its the same definition than the HBP, which allows a withdraw for a duplex.

[@XzyStorm]

6:02 Could you please look into the usage of the FHSA in conjunction with the HBP. You stated that they cannot be used together - I believe that was how it was initially proposed, but Bill C-32 revised that is what I'm reading online. I'm still fact checking this as I read/see conflicting info online.

[@GabrielleTalksMoney]

Yes, thanks for pointing that out. Apparently there has been a change that you can withdraw amounts from your RRSP under the HBP and FHSA, as long as you meet the condition www.canada.ca/en/revenue-agency/services/tax/individuals/topics/first-home-savings-account/withdrawing-money-from-your-fhsa.html - I've made that edit on my video to avoid confusion

[@XzyStorm]

@@GabrielleTalksMoney I was looking at the wrong places. Thanks for that link. Beats reading Bill C-32... lol

[@antonyatsenko4677]

Thanks for the video! Do you know if we can contribute and withdraw in the same year? I’m looking to buy in 2024 and would love to dump in the $8K for tax deduction purposes before withdrawing it

[@moneytimecoaching]

Hey Anton, if your looking to buy next year I can do your mortgage!

[@jamessawyer1331]

I have money coming in but I didn't want to miss out for this year for carryover. How much would the minimum contribution is for the FHSA? I can't find it anywhere online. Only talked about maximum.

[@areebakhter2777]

As low as $1 minimum investment.

[@joe_shen]

When would you suggest in creating this account? I'm currently a uni student, should I just focus on my TFSA for now?

[@vineetgill33]

Hello ! Thanks a lot for the video, I have a question : if I have RRSP room for this year say 3000 and FHSA 8000, if I contribute to both this year, will I get a 11000 deduction ? and also can I withdraw them from my RRSP under HBP and FHSA in the same year(obviously I will keep it there for more than 90 days, but after that can I withdraw and avail the benefits ?)

[@FitDadMD]

Can I still benefit if I already signed for a house but down take over until May 19th? Does the money have to remain in the account for 30 days or anything specific before I withdraw?

[@AcesOntheRiver]

Any idea if you can contribute to the account and withdraw in the same year while getting the tax deduction still? Can two people each contribute 40k to the plan to buy a home together?

[@nl6679]

Been looking EVERYWHERE FOR THE ANSWER TO THIS!!!

[@jefren25]

HBP they need the money to sit in the RRSP account for 90 days ( I believe) to withdraw. Because last time when I purchase a portion of my money was sitting there for only 87 days and I couldn’t get the full 35k outta it. Does FHSA have a period that they hold your money? Ie. can I put in 8k tomorrow and use FHSA two weeks later?

[@zeelbhatt]

Is there any income limit for being eligible for FHSA?

[@gregdixon5848]

Can you do a video on RRIFS please?

[@khaleesit6443]

can i use both rrsp and fhsa to buy my first house .

[@codybaley6266]

yes you can use the HBP in your RRSP in conjunction with the FHSA. You will have to repay the sum you take out with the HBP within 15 years though.

[@hotsauce0606]

Great breakdown

[@thegrindmcoc7966]

Does the withdraw have to occur before the official sale date of the home?

[@TheMapleleafs21]

Can you qualify for a withdrawal from the FHSA if you are going to build your own home instead of buy?

[@IARDM27]

Yes, that's allowed.

[@BeNLaGRAiNE09]

Great explanation!

[@GabrielleTalksMoney]

thanks Ben!

[@scriptozavr]

So you can save up to 40 non-taxable grand, while an average home costs 700+ grand. Our government is a joke?

[@mdogzino]

40,000 is the contribution limit. You can grow the money to a much higher level than that over a period of 15 years.

[@daaniikaa29]

Hi Gabrielle, since both RRSP and FHSA are tax deductible, can they be used in conjunction when filing your annual income tax return? For example, if you contribute 6K to your RRSP and 8K to your FHSA throughout the same calendar year, does this mean you can reduce your net income by 14K for that tax year?

[@ck6libra]

Bump on this question, very curious on this as well, and if the FHSA rolls into RRSP in 15 years can we just use it as extra contribution room?

[@stevenm936]

Yes I wonder about this as well

[@simonouellette8608]

I spoke with my accountant, and yes it does combine. So it’s smart to try and max out your TFSA, RRSP, and now, FHSA per year for the best tax deductions.

[@s.g.e5523]

but yo is 40 bands enough for a crib

[@mohammedosman88]

Hi Gabrielle, thanks for the video. I am wondering if you are 100% sure that we cannot use FHSA + RRSP's HBP together? I can't seem to find any info on that. Thanks.

[@GabrielleTalksMoney]

There has been an update - please refer to my pinned comment!

[@mohammedosman88]

Thanks

[@renenguyen529]

Genius and beautiful young lady

[@sheilalao8826]

I’m an immigrant and currently processing my permanent residency. I was doubtful if I was eligible to open an account as a non-resident but upon further research, I can open an account as long as by the time of withdrawal I am already a resident of Canada. If I am still non-resident and I do need to withdraw the money it will be taxable. Just an FYI for my fellow immigrants that are Temporary Residents. So don’t let this stop you from opening your account.

[@IARDM27]

Can a temporary resident open an account?

[@ShawnKim96]

skin care routine when?

[@jokerjoker173]

I’m from Australia and I don’t quite understand why I watched the whole video…

[@funsvlog7954]

I am from United States... And I am watching too

[@pureffecto]

Watching from Mars here... Saving for a first home on the red planet too

[@tanyakhanijow9660]

That's why your name is Joker!

[@ahmadalalwani5176]

I'm from Canada and I don't understand this video

[@jokerjoker173]

FYI, I meant she was so pretty………

[@tiburciolapanak]

I don't care about your advice actually. I just find you cute.

[@LogicAvenue]

I watched for beauty