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Home Buyers Plan


#1

If you are using the RRSP contributions worksheet and you wish to record a designated amount for the home buyer’s plan that is greater than the the required amount you have to do an override. This is because Tax Cycle, by default, records the required amount in the designated amount field automatically. I would like to suggest that forcing the user to do an override should not happen. Instead the designated amount should appear blank on the worksheet and then the tax preparer can enter the amount he wishes and no override will occur. I did leave this suggestion with Tax Cycle by phone.


#2

I would have to disagree with leaving it blank. I suspect that in most cases, the required amount would be used so having to key it in seems unproductive. I guess they could add the “do you wish to claim another amount” drop down for those who do not like to have it override. I am not sure the reasoning you would claim a different amount anyways. The only thing I could think of off the top of my head is a year you had little income and wanted to clear it without contributing the money back. Other than that, I would rather take the deduction of the RRSP in the year and claim the minimum amount. I have not checked the legislation to see if there be any road blocks to claiming a higher amount.


#3

@james1 Every once in a while the client will request a repayment in excess of what is required simply because they want to get rid of the plan as fast as possible.

I have never encountered any road blocks to repaying an amount higher than what is required.

What is not permitted, however, is to designate an income inclusion higher than the annual minimum where the client has not made their repayment in that particular year.


#4

Thanks for the heads up @snoplowguy, I really have not looked at it that much since I think I have had only one person ask me about higher repayment that I can remember.


#5

My whole point in raising this is that although it doesn’t happen all that often in cases where the DESIGNATED amount of the repayment is greater than the REQUIRED amount you have no choice but to do an OVERRIDE since the REQUIRED amount is already pre-populating the DESIGNATED anount field. Other software will leave the DESIGNATED amount blank to allow the tax preparer the opprtunity to enter the amount desired without doing an override. Call me OCD but I am not a big fan of overrides when doing tax returns.


#6

Shouldn’t be to difficult to change I would think. Another line added similar to the RRSP contribution section, “Do you wish to claim a different amount?” Yes/No, should solve this. LLP as well. I also hate overrides. :smiley:


#7

For the limited number of times a client requests paying down an interest free loan sooner than required… I’d rather not miss the required payment.

An override is easily cleared by clicking the review checkmark - making it only an issue for those that actually have a client that does this.


#8

@Arliss Is this option going to be implemented in a future release?


#9

Not sure but Taxcycle is aware of this issue.


#10

They monitor the forum so it is safe to say they know of the request


#11

Funny thing is, I just got a new client in today and guess what, they are wanting to pay off the reminder of their HBP for 2017. As mentioned by others, the best solution is adding a drop down that asks if you want to claim a different amount; therefore, allowing you to change the amount claimed.


#12

I have one this year where he has over-contributed to his RRSP and we would like to use it to repay the HBP to avoid the over contribution penalties (second year over contributing)
I too don’t like leaving overrides, but will clear the message if that is the only way to do it in TaxCycle.