How to Take Advantage Of The Tax-Free First Home Saving Accounts - FHSA

[@egoranikeev1041]

Hi Cherry! Thank you for your videos! Can you please provide reference to the sourse that says that you can not use FHSA and HBP for the same purchase at the same time. I cannot find a confirmation of that. Thabk you

[@kengreen7708]

Hi Cherry, just want to thank you for your educational videos. I'm a CPA and I never stop learning from your insights. I do share your videos with my audience from time to time in my newsletter. Keep it up! They are so well done and filled with insights.

[@RealEstateTaxTips]

You are so welcome! Thanks for all the kinds words

[@frankeinstein719]

4:25, if I say that I live with my parents while owning a home in the same city, how would the CRA verify that I am not lying? Would they check for hints like for example me paying for the Internet at that location? Would they send someone to verify? Thank you for your help. :)

[@RealEstateTaxTips]

You would need to provide proof to support your claim, CRA would look at more than just one thing to make the determination and weigh all of the evidence in making the determination.

[@frankeinstein719]

@@RealEstateTaxTips thank you

[@stephenn88]

You need to provide them your proofs

[@KD-mz5xv]

great info once again. thank you

[@RealEstateTaxTips]

Glad it was helpful

[@zshn]

Can we leave the FHSA to compound until expiration, transfer to RRSP tax free and at the same time NOT use it for buying the first home?

[@stephenn88]

Why could you do that

[@anwarasady3270]

Can one on lowest income tax bracket open and contribute to FHSA ? and what about , one who pays less than $8000 income tax per year.

[@RealEstateTaxTips]

You are eligible to open the account if you are Canadian tax resident.

[@jcsells100]

Can you transfer funds from RRSP to FHSA tax free?

[@RealEstateTaxTips]

I would imagine that the "transfer" would trigger tax implication on withdrawal, but then because you are contributing the same amount to FHSA you would have no net tax payable in theory.

[@zakiyaelmalika]

Hi Cherry, I had a question about joining someone who is not your spouse. If you want to join with a friend, can both use their contributions from the FHSA and HBP? Also, if one owns a rental property, but not personal residence, they will still quailfy?

[@RealEstateTaxTips]

Can't use FHSA and HBP at the same time. Only one. Yes you can use FHSA contribution or HBP even if you are buying with a friend. Not the first house you own ...should be okay for HBP as far as I remember as long as the other properties you own have not been your primary residence ... hopefully this helps. I might do a follow up video now that FHSA has proper legislation

[@zakiyaelmalika]

@@RealEstateTaxTips Thanks, the follow up video will be helpful. I saw on a few articles, and National Bank of Canada website stated the FHSA and HBP can be used combined. I think the government just changed it. To be safe, I will hold off until 2024 when everything finally rolls out, it seems they are still getting their formal communication out to the banks and people.

[@TraderNatca]

Thank you for this video, Cherry. Can you pls advise if i will need to pay capital gains taxes if i sell my apartment in my country of origin and buy my first home in Canada? I arrived with my family in Toronto beg of Aug, we don’t have PR yet, bit we plan yo stay, so as I understand we are considered residents and we will need to pay taxes. Still i heard about “principal place of residence” and if my undestabding is correct-we dont need to pay taxes from selling our apartment where we used to live. Pls advise what we can count for in means of taxes if we decide to sell our “principal residence” apartment

[@RealEstateTaxTips]

It's unlikely you have a tax liability in Canada, but you would have tax reporting obligation though. Be sure to consult with a tax accountant to make sure you're doing things right.

[@danieladetuyi1500]

If both my partner and I are first-time home buyers, can we both save $40,000 and use the total of $80,000 towards our first home tax free?

[@RealEstateTaxTips]

Yea for sure. But based on current legislation, it will take you five years to achieve that 40k contribution…

[@azalealeonardo8055]

If currently Iiving and working abroad, can I contribute to this account, if I am thinking of moving back to Canada and buying a home in the near future?

[@RealEstateTaxTips]

This all goes back to whether you are considered a Canadian TAX resident. If you are a paying Canadian tax resident (still file your personal return), you would be able to contribute to this account when it becomes effective in 2023. If you aren't a tax resident in Canada, you can only start contributing when you become a Canadian TAX resident. Keep in mind that you can only have $8K contribution limit annually....so it will take you at least 5 years to contribute to the maximum allowable contribution amount. Hope this helps.

[@keungchan1757]

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