IRS Treatment of RRSP Home Buyers' Plan

[Stevecanada]

Hello, my daughter is a US/Canadian dual citizen, and a resident of Canada. She and her husband are buying their first home in Canada. She has a modest amount of funds in her RRSP which she would like to use to help with the down payment. I have seen a post on this forum from about 15 years ago which stated that RRSP withdrawals for the purpose of the Home Buyers' Plan are not taxable by the IRS. Is that still the case? Thank you.

[nelsona]

Correct, it is not taxable upon withdrawal for HBP purpose.
Any repayment which is NOT made, would be taxable in canada, and to some extent in US, depending on what portion of her RRSP is considered taxable (which is essentially the growth portion).

[tbh_rdh22]

Hi nelsona.. bumping this thread because it's very pertinent to my question and not sure I understand your answer.

I'm pretty sure Stevecanada is referring to this thread from 15 years ago: viewtopic.php?t=6611

You're response seems to suggest that a US citizen, resident in Canada using the RRSP HBP loan is no longer a tax issue for the U.S.

Does it still trigger the deferred income issue as described in the older thread? If yes, any idea on where in the U.S. return one is supposed to report this deferred income if they happen to use the HBP?

[nelsona]

There has been no change to this process that I know of.

[Verahase]

I've been through it and I don't have to pay taxes.