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18-398: Individual taxpayers could contribute up to $ 10,000 in a RHOSP with a yearly maximum contribution of $ 1,000. Contributions were deductible for personal income tax purposes and the income earned in the plan was not taxed either. Proceeds from the plan could also be received tax-free if applied to a down payment for a house (and furnitures for certain periods of time). The RHOSP was announced in

36-551: A year or less. The 1988 Ontario budget introduced the Ontario Home Ownership Savings Plan (OHOSP) with the following features (all amounts doubled for couples): The 1989 Ontario budget provided for partial refund of Land Transfer Tax for home purchases that are eligible for the OHOSP. That tax relief was abolished for plans opened after 31 December 1993. Throughout 1993, pressure mounted on

54-527: The 1992 federal budget is the mechanism that allows to withdraw funds tax-free from RRSPs to use them for the purchase one's first home. The withdrawal must be repaid in full within 15 years. In the lead-up to the 1987 Ontario general election , Liberal leader David Peterson pledged to allocate $ 500 million over 10 years to incentives for home buying with the creation of a Home Ownership Savings Plan (HOSP) similar to then-defunct RHOSPs. Unlike RHOSPs, HOSP would only be available to taxpayers earning $ 40,000

72-613: The 2021 federal election campaign the Liberal Party of Canada again pledged to introduce a Home Savings Account for Canadians up to age 40 to contribute up to $ 40,000. Like the RHOSP, money contributed to the account would result in a deduction from taxable income and withdrawals would be tax-free if used to acquire a dwelling. The Liberal platform also includes the doubling of the tax credit for first-time home buyers (from $ 5,000 to $ 10,000). The home buyers' plan (HBP) announced in

90-472: The House of Commons of Canada on 6 May 1974. It was meant to serve as the federal budget for fiscal year 1974–75, but it was never implemented as the government was defeated in a vote of confidence before it was adopted. The NDP , which had been propping up Pierre Trudeau ’s minority government for the past two years, withdrew their support because they were displeased with the content of this budget. This paved

108-450: The May 1974 Canadian federal budget by John Turner on 6 May 1974. Its mechanism is somewhat similar to RRSPs (deductible contributions, income accruing in the plan not taxable) although proceeds from RHOSP could be received tax-free for either: Individuals who already owned a home (either owner-occupied or rented to another person) could not deduct RHOSP contributions. The May 1974 budget

126-604: The Official Opposition for the fourth time in its history. An Act was passed in 1986, providing for the Legislative Assembly to increase from 125 members to 130. The following changes were made: Those candidates not belonging to a major party, receiving more than 1,000 votes in the election, are listed below: Party designations are as follows: Dalton McGuinty, Sr. , MPP for Ottawa South , died on March 16, 1990. No byelection

144-475: The decision made in Quebec two years prior, funds left in RHOSP after 22 May 1985 could be withdrawn tax-free, regardless of the use . Income earned in a RHOSP after 31 December 1985 was to be included in the owner's taxable income, effectively ending the last desirable feature of RHOSPs. The Liberals pledged to reintroduce the RHOSP in a 1986 platform and again during the 1988 federal election campaign . During

162-527: The first budget of the Dalton McGuinty government announced the termination of the OHSOP program. All plans could be used for home purchases in 2005. Funds withdrawn starting on 1 January 2006 were not subjected to recovery of OHOSP tax credits granted in prior years. May 1974 Canadian federal budget The May 1974 Canadian federal budget was presented by Minister of Finance John Turner in

180-464: The latter the funds must be used prior to 1 January 1984). Throughout the 1990s, measures are announced to incentive RHOSP holders to withdraw their remaining funds: The Progressive-Conservatives won a landslide majority in the 1984 federal election . In his first budget , Finance Minister Michael Wilson announced that RHOSP contributions would not be deductible if made after 22 May 1985 and no contribution can be made after 31 December 1985. Unlike

198-481: The legislature, their worst showing in an election in half a century. The NDP was unable to convince the bulk of voters that it should be given credit for the success of the Liberal government that it had supported. It nevertheless did receive more votes and a larger proportion of the vote than in the previous election, although the party lost six seats due to the first-past-the-post electoral system. The party became

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216-439: The province would create a similar system, retroactively since January 1974. Quebec obtained through negotiations with the federal government that RHOSP managed by credit unions would obtain the same tax incentives as those administrated by chartered bank. The 1976 Canadian federal budget allowed for transfers of funds between RHOSP (for instance to select a plan with better returns). The 1977 Canadian federal budget tightened

234-405: The provincial government to extend or remove the 31 December 1993 deadline to open OHOSPs. On 14 December 1993, two weeks before the planned end of the OHSOP program, Finance Minister Floyd Laughren announced that the program would be indefinitely extended. The extension was formalized in the 1994 Ontario budget tabled on 5 May 1994. Contributions to OHOSP could be made until 18 May 2004, when

252-520: The rules of the RHOSP: In the midst of the early 1980s recession , the 1983 Canadian federal budget presented on 19 April 1983 boosted tax incentives for home ownership (especially acquisition of new constructions): On 1 January 1983 Quebec abolished the tax-savings advantages of RHOSPs. Funds accumulated in existing plans could however still be received tax-free if used for a down payment on an owner-occupied dwelling or eligible home furnitures (for

270-605: The way for the 1974 Canadian federal election , in which Trudeau's Liberal Party won with a majority of the seats. The budget saw the inception of the Registered Home Ownership Savings Plan . 1987 Ontario general election David Peterson Liberal David Peterson Liberal The 1987 Ontario general election was held on September 10, 1987, to elect members of the 34th Legislative Assembly of Ontario . The governing Ontario Liberal Party , led by Premier David Peterson ,

288-582: Was able to form a government, even though the Progressive Conservative Party had won a slightly larger number of seats in the previous election . The PC Party, led by Larry Grossman , campaigned on a platform of tax cuts to stimulate the economy. Its support continued to slide, as voters opted for the change that the Liberal-NDP arrangement provided, with Grossman losing his own seat. The PCs fell to 16 seats and third place in

306-697: Was never adopted as the 29th Canadian Parliament was dissolved prior to the vote of the budget. The RHOSP was however reaffirmed by finance minister John Turner in the November 1974 budget after the Liberals won a majority of seats in the 1974 federal election . Amendments to the Income Tax Act (including the creation of the RHSOP) received royal assent on 13 March 1975. On 19 December 1974, Quebec 's Finance Minister Raymond Garneau announced that

324-592: Was returned to power with their first majority government in half a century, and the second-largest majority government in the province's history. Peterson had successfully managed to govern with a minority in the Legislature by obtaining the co-operation of the Ontario New Democratic Party , led by Bob Rae , in a confidence and supply agreement. It was through the NDP's support that Peterson

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