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Exciting News for First Time Home Buyers
March 20, 2024 | Posted by: Angela Robinson
April 1, 2023, marked the launch of Canada’s newest registered savings plan – the tax-free First Home Savings Account (FHSA)! ???? Here are five key things you need to know to make the most of this opportunity:
1) Tax-Free In; Tax-Free Out: With the FHSA, you can contribute up to $40,000 towards your first home on a tax-free basis. It combines the best features of RRSPs and TFSAs, offering flexibility and tax benefits.
2) Who Qualifies? To be eligible, you must be a first-time homebuyer and meet specific criteria outlined in the rules.
3) Contribution Limits: You can contribute up to $8,000 per year, with penalties for overcontributions. Unused contribution room can be carried forward, maximizing your savings potential.
4) Flexibility: Can't contribute the full amount? No worries! You can transfer funds from your RRSP to your FHSA, tax-free. Plus, any unused contribution room can be carried forward.
5) What if You Don’t Buy? Your FHSA can remain open for up to 15 years, providing flexibility even if your homeownership plans change. Funds not used for a home purchase can be transferred to an RRSP or included in income.
Plus, you can still benefit from the Home Buyers’ Plan (HBP) alongside the FHSA, giving you more options for your dream home!
Don't miss out on this incredible opportunity to save for your first home tax-free, contact us today!
Full Article: https://ca.finance.yahoo.com/news/advantage-tax-free-first-home-142255950.html
