How Can I Help my Kids Save For a Home?

Consider contributing to a First Home Savings Account (FHSA) on their behalf. It’s a great way to help adult children who haven’t bought a home. FHSA is a new program started last year whereby you can save $8,000 per year, up to $40,000 towards a home.

If you are gifting money to your adult children, encourage them to use your contribution to fund an FHSA, if they are buying their first home.

Here are the tax benefits to your children:

• Any money contributed into the FHSA is tax-deductible when deposited, and tax-free if used to buy a home within 15 years.
• The adult child doesn’t have to use the tax receipt (for up to $8,000) against income in the year that contribute. They can carry it forward and recognize a bigger tax deduction in a future year when their income is higher.

If your child would like to speak with someone on my team about achieving their financial goals, please reach out and let’s set up a time.

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Disclaimer:

Information in this article is from sources believed to be reliable, however, we cannot represent that it is accurate or complete. It is provided as a general source of information and should not be considered personal investment advice or solicitation to buy or sell securities. The views are those of the author, Eric Muir and Derek Lacroix and not necessarily those of Raymond James Ltd. Investors considering any investment should consult with their Investment Advisor to ensure that it is suitable for the investor’s circumstances and risk tolerance before making any investment decision. Raymond James Ltd. is a Member Canadian Investor Protection Fund.