Saving up for your first house is already stressful enough, why add taxes on top?
As part of the 2022 Federal Budget, the federal government introduced the Tax-Free First Home Savings Account (FHSA). The FHSA allows eligible taxpayers to contribute $8,000 per year (to a lifetime maximum of $40,000), and to deduct contributions made from income. Where accumulated contributions are withdrawn and used to purchase a home, no tax is payable on the withdrawal.
Deductions for contributions to an FHSA can be made starting with the 2023 tax year, and it will be possible to set up such plans with a Canadian financial institution as of April 1, 2023. The most recent information posted on the new FHSA can be found on the Finance Canada website at https://www.canada.ca/en/department-finance/news/2022/08/design-of-the-tax-free-first-home-savings-account.html.
If you would like help with dealing with the CRA or would like someone to file your personal taxes, please feel free to call us at (905) 305-9722 or email us at info@eigenmachtcrackower.com and we will help you out!
