Budget 2022 proposes the FHSA — combining the best of an RRSP (tax-deductible contributions) with a TFSA (tax-free withdrawals for a home purchase). With an annual limit of $8,000 and lifetime cap of $40,000, I think this will fundamentally change how first-time buyers save. I'm already discussing this with clients who are planning to buy.
I keep a close eye on developments like these so my clients don't have to. Tax law changes can significantly affect your filing strategy, and I believe the earlier you understand them, the better positioned you are to plan effectively.
Whether you file in Canada, the United States, or both, staying current on these changes is essential. In my cross-border practice, I've seen firsthand how policy shifts in one country can create unexpected obligations — or opportunities — in the other.
If you have questions about how this affects your specific situation, please don't hesitate to reach out. I'm here to help you navigate these changes and make the best decisions for your financial future.