FHSA Guide: Making a Withdrawal From Your Account
So far we have learned two things about the First Home Savings Account (FHSA). Number one, is what exactly the account is. The second thing we learned was about opening an FHSA if you want to get a head start on saving before you start searching for houses for sale in Windsor. What about when it comes time to use that money for a Windsor home for sale? We’ll cover withdrawals here today.
If you want to avoid the income tax consequences of a withdrawal, it must be one of the three following types of withdrawal:
Outside of these, the amount withdrawn from your FHSA is considered taxable and therefore must be included as income when you file income tax. It is important to note however that if you transfer property directly from your FHSA to another FHSA, a registered retirement saving plan (RRSP) , or a registered retirement income fund (RRIF) , this is considered a “transfer” and not a “withdrawal” for taxation purposes.
Let's focus on a Qualifying Withdrawal today. If you meet the conditions below, you can withdraw all of the property from your FHSAs tax-free. This can be done in one lump sum or over the course of multiple withdrawals. The conditions set out by the CRA are:
As long as you meet these conditions, you are not required to include this in income tax and benefit return.
Here at Jump Realty our agents will give you honest advice on what course of action is best for you in their professional opinion and will always put taking care of your best interests first! With offices in Windsor, Tecumseh, Kingsville, LaSalle, Harrow, Chatham, and Leamington, no matter where you are, a Jump agent is ready to help. Please contact us for any housing needs and let us give you a better real estate experience!