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Home Buyers' Plan payment due by March 1 |
(NC)—If you participated in the Home Buyers' Plan (HBP) prior to 2005, you have a repayment due in the 2006 taxation year.
"The good news is that a repayment made on, or before March 1, 2007 will be included in the 2006 taxation year," says Chartered Accountant John Wonfor, national tax partner, BDO Dunwoody LLP, National Office in Toronto.
"A repayment is made by making a regular contribution to your RRSP. When you file your 2006 tax return, you'll have to complete Schedule 7. On this form you'll state that the Registered Retirement Savings Plan is to be applied as a HBP repayment and not a deductible contribution.
"If you have already made RRSP contributions during 2006, you can designate an amount to cover your required payment. The Canada Revenue Agency (CRA) generally sends an HBP notification towards the end of each year," explains Wonfor.
For further information about taxes, contact a Chartered Accountant.
Credit: www.newscanada.com |
