FHSA withdrawal rules and and rental property advice for a first-time home buyer Oct 11th

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FHSA withdrawal rules and and rental property advice for a first-time home buyer

– moneysense.ca

Ask MoneySense
Would it be beneficial to open a first-time home buyer’s savings account if I was planning on buying a property soon, say, in 2023 or 2024?

If I purchase a house and live in the basement but rent out the main floor, would that still be taxed as capital gains?

Are there any investment taxes I would need to pay for renting a property? If so, is there an estimate to how much those would be?

Is rental income added to your annual income when you report taxes? Or does a business need to be created? Is there a benefit to either approach?

Are there any other costs I need to budget for?

—Priya

FHSA withdrawal rules on an investment property

I will try to touch on everything you have asked, Priya.

The savings account you are referring to is a first home savings account (FHSA). If you open one and contribute up to $8,000—the maximum annual FHSA contribution limit—this year and again in the new year, you’ll have up to $16,000 of tax deductible contributions that can be withdrawn tax-free for the purchase of an eligible home…

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