But I swear I am a first time homebuyer... he just isn't!
October 31, 2012 10:18 AM Subscribe
First Time Homebuyer (Canada) Plan-filter. Can he NOT be considered my common-law spouse?
posted by elkerette to Law & Government (10 answers total)
My boyfriend and I recently got engaged (how recent? Last Friday). We are now looking at purchasing a house together in Toronto in the next 3 months. We have been dating since January 2011, living together in the condo which he owns since September 2011. Last January, we both filed our taxes separately indicating our marital status as being single.
I have $25,000 of assets in an RRSP account which I would like to use to help fund our down-payment per the terms of the Canadian Government’s Home-buyer’s Plan for first-time buyers.
The CRA’s website about eligibility for the plan is pretty straightforward:
“You are not considered a first-time home buyer if, at any time during the period beginning January 1 of the fourth year before the year of the withdrawal and ending 31 days before the withdrawal, you or your spouse or common-law partner owned a home that you occupied as your principal place of residence.”
Then they define a common-law partner as being “a person who is not your spouse, with whom you are living in a conjugal relationship, and to whom at least one of the following situations applies. He or she:
1. has been living with you in such a relationship for at least 12 continuous months;
2. is the parent of your child by birth or adoption; or
3. has custody and control of your child (or had custody and control immediately before the child turned 19 years of age) and your child is wholly dependent on that person for support.”
Recognizing the following:
• According to what I have reported to the CRA, I am still single (as per what was listed on my last tax submissions) but technically we now qualify as common-law partners based on the fact that we have been living together for 13 months.
• My address was officially changed to his condo as of September 1, 2011
• I would really, REALLY like to be able to use my RRSP’s
Can I still participate without fear of being screwed over tax-wise? Is there a way I can just submit my request and get approval from the CRA to use it?
Thanks in advance tax-expert MeFites!