CTP13_Chapter_10

2014 clarence byrd inc 22 canadian tax principles

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Unformatted text preview: g withdrawals – Up To $25,000 Per Individual – Purchase Of A “Qualifying Home” By October 1 Of Year Following Purchase Withdrawal Withdrawal – Must occupy within one year – Cannot have owned a home in the previous four years Copyright © 2014, Clarence Byrd Inc. 23 Canadian Tax Principles Registered Retirement Savings Plans Home Buyers’ Plan (HBP) – Limit On RRSP Deductions Example •Balance of $10,000 •Contribute $5,000 •Withdraw $15,000 Within 90 Days Of Contribution •No Deduction Allowed For The $5,000 Contribution Copyright © 2014, Clarence Byrd Inc. 24 Canadian Tax Principles Registered Retirement Savings Plans Home Buyers’ Plan (HBP) • Repayment – Second calendar year following withdrawal – No maximum – Minimum as per formula Copyright © 2014, Clarence Byrd Inc. 25 Canadian Tax Principles Registered Retirement Savings Plans Home Buyers’ Plan (HBP) • Withdraw $15,000 Balance 1/15 Balance 1/14 Balance 1/13 Balance $15,000 ( 1,000) $14,000 ( 1,000) $13,000 ( 1,000) $12,000 etc. Copyright © 2014, Clarence Byrd Inc. 26 Canadian Tax Principles Registered Retirement Savings Plans Lifelong Learning Plan (LLP) • General Rules – Limits On Withdrawals • $10,000 In Any One Calendar Year • $20,000 Maximum Over Four Calendar Years Copyright © 2014, Clarence Byrd Inc. 27 Canadian Tax Principles Registered Retirement Savings Plans Lifelong Learning Plan (LLP) • General Rules – Who Qualifies? • Full Time Enrollment - Qualifying Educational Program In Full Year Of Withdrawal Year • Entitled To Enroll Prior To March Of Year Following Entitled Withdrawal Withdrawal Copyright © 2014, Clarence Byrd Inc. 28 Canadian Tax Principles Registered Retirement Savings Plans Lifelong Learning Plan (LLP) • Limit On RRSP Deductions – Same As Home Buyer’s Limit • Repayment – When? – Must Begin Within Six Years – Repay Over 10 Years Straight Line • • • • 1/10 1/9 1/8 Etc. Copyright © 2014, Clarence Byrd Inc. 29 Canadian Tax Principles Registered Retirement Savings Plans Lifelong Learning Plan (LLP) • Other Considerations – Repeat Participation – Residency Copyright © 2014, Clarence Byrd Inc. 30 Canadian Tax Principles Registered Retirement Savings Plans HBPs and LLPs • Departures From Canada – Amounts must be repaid by the earlier of: • Filing date for year of departure • 60 days after becoming non-resident Copyright © 2014, Clarence Byrd Inc. 31 Canadian Tax Principles Registered Retirement Savings Plans HBPs and LLPs • Death of Registrant – Unpaid balances into final tax return – Spouse can elect to take over repayment schedule. Copyright © 2014, Clarence Byrd Inc. 32 Canadian Tax Principles Registered Pension Plans (RPPs) – Types Of Plans • Defined Benefit • Money Purchase Money (Defined Contribution) (Defined – Registration Of The Plan • Required for deductibility Copyright © 2014, Clarence Byrd Inc. 33 Canadian Tax Principles Registered Pension Plans (RPPs)...
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