Which of the Following Is True About the Home Buyers

question 21

Multiple Choice

Which of the following is True about the Home Buyers' Plan?

• A)It's a government program which enables first time home owners with less than five percent down payment to purchase a home using CMHC insurance.
• B)It's a government program exempting Canadian first time home buyers in certain provinces from land transfer tax.
• C)It's a government program allowing first time home buyers to withdraw $20 000 from their RRSPs tax free as long as paid back within ten years.
• D)It's a government program allowing first time home buyers to withdraw $25 000 from their RRSPs tax free as long as paid back within fifteen years.

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Definitions:

Provisional Income

Income that is not guaranteed or fixed, often used in reference to determining the taxability of certain benefits such as Social Security.

Social Security

A federal program in the United States that provides retirement, disability, and survivors benefits to eligible individuals.

Married, Filing Jointly

A tax filing status available to married couples that allows them to file one tax return jointly, combining their incomes and deductions.

Marginal Ordinary Income Tax Rate

The tax rate that applies to the last dollar of the taxpayer's income, influencing decisions on additional income.