04-02-2016, 02:35 AM
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#43
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I contribute to threads in the offtopic forum
Join Date: Dec 2003
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Quote:
Originally Posted by SumAznGuy
When you buy RRSP's, all you are doing is defering that portion of income to be taxed at a later date, and hopefully at a lower tax bracket.
When you take out, max $25K, as a first time home buyer, you have to pay it all back within 15 years.
If you miss a repayment, then they treat it as a withdrawl from RRSP's and you will be taxed on it, just like you would if you needed money and withdrew from your RRSP's.
Sorry, I re-read what I wrote and see what you are confused on.
What I meant by taxable income is, when you withdraw from your RRSP's, that amount is added to your taxable income.
Say you made $40K and needed to withdraw $20K from RRSP's. For that tax year, you will be taxed on $60K.
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I remember seeing somewhere that if you make less than $7,9xx a year, you don't get taxed. Did they changed that?
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