An individual purchased a single-family home in 2020 for rental to a third party, in May 2023 opened and contributed $8,000 to an FHSA and then, after the tenant vacated, moved into the home as his principal place of residence on November 1, 2023, so that there was a deemed disposition and reacquisition of the property pursuant to s. 45(1)(a) on that date. Could the individual then make an FHSA withdrawal in November having regard to the requirement in para. (d) of the “qualifying withdrawal” definition that “the individual did not acquire the qualifying home more than 30 days before the particular time” of the withdrawal?
CRA indicated that since the deemed disposition and acquisition rule in s. 45(1) applied only for the purposes of subdivision c of Division B of Part I, and not Division G of Part I (containing s. 146.6), the individual would be considered to have acquired the home more than 30 days previously, so that the “qualifying withdrawal” definition would not be satisfied.