The Tax-Free First Home Savings Account (FHSA)

Tax-Free First Home Savings Account (FHSA) gives a prospective first-time home buyer the
ability to save $40,000 on a tax-free basis. FHSA has an $8,000 annual contribution limit in
addition to a $40,000 lifetime contribution limit.

To open an FHSA, an individual must be a resident of Canada, at least 18 years of age and have
not owned a home in which they lived at any time during the part of the calendar year before
the account is opened or at any time in the preceding four calendar years.

Salient features of a FHSA are as follows:

*2023 room

An individual could transfer/rollover funds from an FHSA to an RRSP or a RRIF on a tax-free basis and these transfers would NOT reduce, or be limited by, an individual's available RRSP contribution room.

An individual however would NOT be permitted to make both an FHSA withdrawal and an HBP withdrawal in respect of the same qualifying home purchase.

For more information visit the CRA link https://www.canada.ca/en/department-finance/news/2022/08/design-of-the-tax-free-first-home-savings-account.html

Have questions on if you are eligible or if an expense can be claimed? Or on how to file in general - Contact us at Canatax pros by calling 604-373-0788 , emailing us at commercial@ctpros.ca or by simply filling in the contact form

Disclaimer: This article only provides general information which is not construed as professional advice. Readers seeking professional advice must consult an experienced and a qualified professional in the respective field.