{"id":1,"date":"2022-12-16T00:40:44","date_gmt":"2022-12-16T07:40:44","guid":{"rendered":"https:\/\/davidushko.ca\/?p=1"},"modified":"2023-01-13T17:09:09","modified_gmt":"2023-01-14T00:09:09","slug":"hello-world","status":"publish","type":"post","link":"https:\/\/davidushko.ca\/index.php\/2022\/12\/16\/hello-world\/","title":{"rendered":"Tax Free First Home Savings Accounts (FHSA). The greatest thing since&#8230;"},"content":{"rendered":"\n<p class=\"has-text-align-left\">Serving Individuals, Businesses, Charities and NPOs<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"87\" src=\"https:\/\/davidushko.ca\/wp-content\/uploads\/2022\/12\/David-Ushko-Banner-1024x87.png\" alt=\"\" class=\"wp-image-20\" srcset=\"https:\/\/davidushko.ca\/wp-content\/uploads\/2022\/12\/David-Ushko-Banner-1024x87.png 1024w, https:\/\/davidushko.ca\/wp-content\/uploads\/2022\/12\/David-Ushko-Banner-300x26.png 300w, https:\/\/davidushko.ca\/wp-content\/uploads\/2022\/12\/David-Ushko-Banner-768x66.png 768w, https:\/\/davidushko.ca\/wp-content\/uploads\/2022\/12\/David-Ushko-Banner.png 1264w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<figure class=\"wp-block-image aligncenter size-full is-resized\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/davidushko.ca\/wp-content\/uploads\/2022\/12\/David-Ushko.jpg\" alt=\"\" class=\"wp-image-22\" width=\"128\" height=\"194\" srcset=\"https:\/\/davidushko.ca\/wp-content\/uploads\/2022\/12\/David-Ushko.jpg 395w, https:\/\/davidushko.ca\/wp-content\/uploads\/2022\/12\/David-Ushko-198x300.jpg 198w\" sizes=\"auto, (max-width: 128px) 100vw, 128px\" \/><figcaption class=\"wp-element-caption\">David Ushko, CPA, CA<\/figcaption><\/figure>\n\n\n\n<p>This is something very interesting and potentially quite useful to those who qualify.  It was announced earlier in 2022.  Anyone who qualifies should consider contributing to a First Home Savings Account (FHSA) in 2023 or after.<\/p>\n\n\n\n<p>It provides prospective first time home buyers the ability to save up to $40,000 on a tax free basis towards the purchase of a first home in Canada.  <\/p>\n\n\n\n<p>Contributions of up to $8,000 per year are allowed and are tax deductible  <\/p>\n\n\n\n<p>Withdrawals to purchase a first home, including any investment income or growth earned in the account are non-taxable.<\/p>\n\n\n\n<h5 class=\"wp-block-heading\">Some things to be aware of<\/h5>\n\n\n\n<p>There is a one percent per month penalty for over contributions <\/p>\n\n\n\n<p>A FHSA is permitted to hold the same types of qualified investments currently allowed for a TFSA or RRSP.  Please be aware there are penalties for other prohibited investments.<\/p>\n\n\n\n<p>There are some specific rules on the timing of withdrawals.  For instance, you can not acquire a home more than 30 days prior to the withdrawal.  <\/p>\n\n\n\n<p>You must intend to occupy the home as your principal place of residence and it must be in Canada.<\/p>\n\n\n\n<h5 class=\"wp-block-heading\">Transfers<\/h5>\n\n\n\n<p>You can transfer funds from one FHSA to another, or to an RRSP or a RRIF, all on a tax free basis.  However, funds transferred to a RRSP or RRIF will be taxed upon withdrawal.  Such transfers will not affect your RRSP contribution room or the FHSA limit.<\/p>\n\n\n\n<h5 class=\"wp-block-heading\">No spousal plans<\/h5>\n\n\n\n<p>Unlike an RRSP, there is no direct spousal contribution allowed.  However, you can give your spouse or common law partner the funds to make their own FHSA contribution.<\/p>\n\n\n\n<h5 class=\"wp-block-heading\">Successor\/ Beneficiary designation<\/h5>\n\n\n\n<p>Just like TFSAs, you can designate your spouse or common law partner as the successor account holder, so the account can maintain its tax exempt status if you die.  <\/p>\n\n\n\n<p>If someone else is designated as a beneficiary the funds would generally need to be withdrawn and paid to the beneficiary, who would be taxed on them.<\/p>\n\n\n\n<h5 class=\"wp-block-heading\">SOME Other issues<\/h5>\n\n\n\n<p>Interest on money borrowed to contribute to contribute an FHSA will not be tax deductible.<\/p>\n\n\n\n<p>You will not be able to pledge FHSA assets as collateral for a loan.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Tax Free First Home Savings Accounts<\/p>\n","protected":false},"author":1,"featured_media":272,"comment_status":"closed","ping_status":"open","sticky":true,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-1","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized"],"_links":{"self":[{"href":"https:\/\/davidushko.ca\/index.php\/wp-json\/wp\/v2\/posts\/1","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/davidushko.ca\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/davidushko.ca\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/davidushko.ca\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/davidushko.ca\/index.php\/wp-json\/wp\/v2\/comments?post=1"}],"version-history":[{"count":11,"href":"https:\/\/davidushko.ca\/index.php\/wp-json\/wp\/v2\/posts\/1\/revisions"}],"predecessor-version":[{"id":281,"href":"https:\/\/davidushko.ca\/index.php\/wp-json\/wp\/v2\/posts\/1\/revisions\/281"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/davidushko.ca\/index.php\/wp-json\/wp\/v2\/media\/272"}],"wp:attachment":[{"href":"https:\/\/davidushko.ca\/index.php\/wp-json\/wp\/v2\/media?parent=1"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/davidushko.ca\/index.php\/wp-json\/wp\/v2\/categories?post=1"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/davidushko.ca\/index.php\/wp-json\/wp\/v2\/tags?post=1"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}