Kaye is participating in the Home Buyer's Plan (HBP) where she bought her first home a few years ago. At that time, she withdrew $30,000 from her Registered Retirement Savings Plan (RRSP) for the downpayment. Under the March 2019 rules for the HBP, Kaye was to make minimum required repayments of $2,000 over 15 years. To date she has made HBP repayments of $2,000 in 2021, $2,000 in 2022 and $2,000 in 2023. In 2024 she contributes $10,000 to her RRSP and designates that amount as a repayment under the HBP for 2024. Which statement is correct regarding Kaye's situation?(ignore the proposed Budget 2024 legislation) Question 25Select one: a. Kaye still owes $14.000 under the HBP, but can take a $10.000 RRSP deduction on her 2024 tax returns for the HBP repayment. b. Kaye still owes $14,000 under the HBP, but can take a maximum $2,000 RRSP deduction on her 2024 tax return for the HBP repayment. C. Kaye has a penalty to pay for the $10,000 repayment which is above the annual repayment amount. d. Kaye's minimum annual repayment under the HBP is now $1,273 and no longer $2,000.. e. Kaye still owes $14.000 under the HBP but has a penalty to pay for the $10. 000 payment which is above the annual repayment amount.
Kaye is participating in the Home Buyer's Plan (HBP) where she bought her first home a few years ago. At that time, she withdrew $30,000 from her Registered Retirement Savings Plan (RRSP) for the downpayment. Under the March 2019 rules for the HBP, Kaye was to make minimum required repayments of $2,000 over 15 years. To date she has made HBP repayments of $2,000 in 2021, $2,000 in 2022 and $2,000 in 2023. In 2024 she contributes $10,000 to her RRSP and designates that amount as a repayment under the HBP for 2024. Which statement is correct regarding Kaye's situation?(ignore the proposed Budget 2024 legislation) Question 25Select one: a. Kaye still owes $14.000 under the HBP, but can take a $10.000 RRSP deduction on her 2024 tax returns for the HBP repayment. b. Kaye still owes $14,000 under the HBP, but can take a maximum $2,000 RRSP deduction on her 2024 tax return for the HBP repayment. C. Kaye has a penalty to pay for the $10,000 repayment which is above the annual repayment amount. d. Kaye's minimum annual repayment under the HBP is now $1,273 and no longer $2,000.. e. Kaye still owes $14.000 under the HBP but has a penalty to pay for the $10. 000 payment which is above the annual repayment amount.
Chapter4: Income Exclusions
Section: Chapter Questions
Problem 42P: Tia is married and is employed by Carrera Auto Parts. In 2019, Carrera established high-deductible...
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Transcribed Image Text:Kaye is participating in the Home Buyer's Plan (HBP) where she bought her first home a few years ago. At that time, she withdrew $30,000 from her
Registered Retirement Savings Plan (RRSP) for the downpayment. Under the March 2019 rules for the HBP, Kaye was to make minimum required
repayments of $2,000 over 15 years. To date she has made HBP repayments of $2,000 in 2021, $2,000 in 2022 and $2,000 in 2023. In 2024 she
contributes $10,000 to her RRSP and designates that amount as a repayment under the HBP for 2024. Which statement is correct regarding Kaye's
situation?(ignore the proposed Budget 2024 legislation)
Question 25Select one:
a.
Kaye still owes $14.000 under the HBP, but can take a $10.000 RRSP deduction on her 2024 tax returns for the HBP repayment.
b.
Kaye still owes $14,000 under the HBP, but can take a maximum $2,000 RRSP deduction on her 2024 tax return for the HBP repayment.
C.
Kaye has a penalty to pay for the $10,000 repayment which is above the annual repayment amount.
d.
Kaye's minimum annual repayment under the HBP is now $1,273 and no longer $2,000..
e.
Kaye still owes $14.000 under the HBP but has a penalty to pay for the $10. 000 payment which is above the annual repayment amount.
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