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HBP Home Buyers Plan

Client did not file taxes for 5 years, every year they should have paid back 1,000 to HBP. However, in CRA it says to add 5,000 in 2019 return.

Should I file and add 1,000 in each of last 5 years OR file 0 repayment in prior 4 years and just do 5,000 in 2019?

I would add $5,000 to 2019 return. That is what CRA asked for, and that means the previous years taxes will be somewhat lower with less interest and penalty as a result.

There is insufficient information provided to know whether or not amounts pursuant to S146.01(3) apply.

However, in any case, S146.01(4) prohibits doing as obhorst suggests, since the formula in S146.01(4) is mandatory.

Tax returns should always be prepared pursuant to the ITA.
I don’t understand the phrase: “However, in CRA it says…”

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On a few occasions, some of my clients had erroneous information for Represent A Client portal.
I would first find out what was his HBP balance owing and HBP repayment amount for the earliest year he didn’t file.
Then complete the RRSP Worksheet for the oldest non-filed return. Then carry it forward to the next year. Repeat for each year.
TaxCycle will calculate the remaining HBP balance owing for each year.

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I just had a client with a similar situation. Yes, CRA showed the full amount HBP owing in 2019, however
as suggested by both Joe and Taxwave, I broke the amount owing down by years and claimed the appropriate amount for each year. CRA processed the returns correctly. As stated by Joe, I believe this is the correct way to do this.

That’s the way I’ve always done it as well – apportion to each year and file oldest to newest in that order.

I have done the same. Claim each year and carry over the balance to the next year.

I took it that CRA told him to file that way. Normally in that situation, I would record the correct amount for each year.

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