Can I use my RRSP to buy my "first home" in The States
With all the foreclosures going on down in Florida and many other states this is probably a question that many Canadians will find interesting.
As stated on the CRA's "Home Buyers' Plan (HBP)" web-page:
The Home Buyers' Plan (HBP) is a program that allows you to withdraw up to $20,000 from your registered retirement savings plan (RRSPs) to buy or build a qualifying home for yourself or for a related person with a disability.
The key words in the above statement are: qualifying home. What is a qualifying home within the meaning of the HBP?
On the same web-site, the answer provided is:
"For the purposes of the Home Buyers' Plan, a qualifying home is a housing unit located in Canada."
Not being satisfied with this answer I did some more research on the Internet (inconclusive) and spoke briefly on the phone with David Ingram, a renowned International Income Tax expert.
To my question "What are the tax implications if I want to use my RRSP to buy a home in the United States" David's answer was that "there is no short answer" and that it depended on the individual's situation and in particular what is the person's status in the United States ("are you a citizen or do you have a visa?" were his exact words). My answer was "I am a Canadian citizen no I do not have a US visa" and to that David responded "then you can not have a primary residence in the States. You may own 100 properties there if you like but you can not live there on a permanent basis. This is a US regulation."
David is an extremely busy man and he charges $450 per hour for his consultations and he was unable to spend any more time with me, however the fact that he asked about details of my situation lead me to believe that there might be a way around the above limitations.
Can anyone shed more light on this subject?
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