In 2015, Mr. O'Toole made Home Buyer's Plan (HBP) withdrawals that totaled $18,000. However, for the 2020 tax year, he forgot to make his regular minimum repayment to his RRSP. He did not miss a payment in previous years, and he has not overpaid any previous minimum required payment. What will happen to Mr. O'Toole because he missed this HBP repayment? O $1,200 is treated as taxable income to Mr. O'Toole $1,800 is treated as taxable income to Mr. O'Toole $15,600 is treated as taxable income Mr. O'Toole may file an election to extend his repayment schedule by one year
In 2015, Mr. O'Toole made Home Buyer's Plan (HBP) withdrawals that totaled $18,000. However, for the 2020 tax year, he forgot to make his regular minimum repayment to his RRSP. He did not miss a payment in previous years, and he has not overpaid any previous minimum required payment. What will happen to Mr. O'Toole because he missed this HBP repayment? O $1,200 is treated as taxable income to Mr. O'Toole $1,800 is treated as taxable income to Mr. O'Toole $15,600 is treated as taxable income Mr. O'Toole may file an election to extend his repayment schedule by one year
Chapter4: Gross Income: Concepts And Inclusions
Section: Chapter Questions
Problem 39P
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Transcribed Image Text:In 2015, Mr. O'Toole made Home Buyer's Plan (HBP) withdrawals that totaled
$18,000. However, for the 2020 tax year, he forgot to make his regular minimum
repayment to his RRSP. He did not miss a payment in previous years, and he has not
overpaid any previous minimum required payment. What will happen to Mr. O'Toole
because he missed this HBP repayment?
$1,200 is treated as taxable income to Mr. O'Toole
$1,800 is treated as taxable income to Mr. O'Toole
$15,600 is treated as taxable income
Mr. O'Toole may file an election to extend his repayment schedule by one year
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