A first home savings account (FHSA) is a registered plan allowing you, as a prospective first-time home buyer, to save for your first home tax-free (up to certain limits). You can open an FHSA starting April 1, 2023.
Plan administrators should consult Savings and pension plan administration.
Who is eligible to open an FHSA and when to close your account
How much you can contribute or transfer to your FHSAs, and how much unused FHSA participation room you can carry forward
How much can be transferred directly to and from your FHSAs
Withdrawals from your FHSAs to buy a qualifying home or for other reasons, and possible tax consequences
How much of your FHSA contributions you can deduct on your income tax and benefit return, and how much of your unused FHSA contributions you can deduct in future years
Taxes you may need to pay and how to reduce or eliminate your excess FHSA amount
What happens if you are or become a non-resident of Canada
What happens if you are required to distribute amounts from your FHSAs on breakdown of your marriage or common-law partnership
What happens to an FHSA when the FHSA holder dies, including tax implications for the deceased holder, survivor, and other FHSA beneficiaries
From: Canada Revenue Agency
Original Article taken from Canada.ca - LINK
