Any experts in here? Somewhat technical question
My situation is as follows;
I am first-time home buyer, and I have saved up down-payment in RRSPs. Meanwhile, I've met my wife two years ago, and we got married this past summer. She also has RRPs and savings. When we went to purchase a new construction home, my wife told me that she might have a condo title in her name after I explained to her about land transfer tax and RRSP benefits for first time home buyers.
So we investigated some more. Wife's grandma (with my wife's permission) put her on the title as an insurance after my wife's mom (who also lives in the condo with grandma) joined a Catholic convent. To clarify, my wife never lived there. The lawyer who did the paperwork did do a full title I believe not a sublet.
My question is, does this disqualify us from first time home buyers tax rebate? If so, could there be a work-around?
I've asked manny people, but nobody seams to know for sure. So far people seam to think that we wouldn't be able to claim tax refund, but we might be able to withdraw our RRSPs.
Thanks in advance
I think you need a lawyer to answer this one. The argument is that your wife does not have "beneficial ownership" until your grandmother passes away - that the condo was put into joint ownership only for estate planning purposes; and even in the absence of a written agreement your wife could provide evidence that she put no money into the property. But that has to do with attribution rules on jointly-owned property for tax purposes. I don't know if the tax rebate rules would recognize this.
Last edited by OhGreatGuru; 2017-01-05 at 09:01 PM.
Looks like you qualify for both
For income new home buyers amount
Line 369 - Home buyers' amount
You can claim $5,000 for the purchase of a qualifying home in 2016 if both of the following apply:
you or your spouse or common-law partner acquired a qualifying home; and
you did not live in another home owned by you or your spouse or common-law partner in the year of acquisition or in any of the four preceding years (first-time home buyer).
So key word is 'live in' So if you or your spouse did not live in the condo she 'owned' you are all set
Next, the RSP home buyers plan
From the CRA Web site
You are considered a first-time home buyer if, in the four year period, you did not occupy a home that you or your current spouse or common-law partner owned.
The key word here is occupy so as long as your wife never lived in the house she ' owns' you are ok.
Not so tough and looks like you are all set providing your wife never lived there which I believe you said was the case.