How to square off Home Buyer Plan borrowed funds

[jaloops]

So in Canada, you can take out money from RRSP (one time in life) to buy house. Then you must pay it back in 15 years. If you don't then CRA automatically deducts 1/15 amount from your RRSP contribution every year.

Now I borrowed some money 6 years ago when buying my house. I have sold my house and waiting on closing. Moving to States in Feb. I still owe 3000+ to HBP as per last year's Notice of Assessement. How can I pay it back or done with it? Should I purchase RRSP and fill up a form and tell CRA that I am paying it back by buying RRSP again, but not claiming for this year? Or should I wait till next year, when I file the final tax for Jan 2013 income and also pay departure tax on all the RRSP that I withdraw.

For RRSP withdraw, I still have not figured it out, whether it should be lumpsum this year or gruadually to report 25% departure tax to IRA in US. I need a smart cross border accounting firm to advise me on that. I haven't found one :(

[nelsona]

Just to be accurate, CRA would add 1/15 of what you took for your HBP to your income, not reduce your contribution.

When you leave Canada, you have 60 days to either repay (contribute to your RRSP), or the balance will be added to your departure return.

So, while this ould all be reported on your 2013 departure return, you need to do this sooner.

You might consider NOT paying it back, as the $3000 added to your 2013 tax return miay not result oin any extra tax.

I've addrssed all aspaects of post-departure RRSP handling, you just need to browse.