29 Leonard withdrew $10,000 from his RRSP under the Home Buyers' Plan on August 12th of last year and used the amount as a deposit on the purchase of a new house. However, he realized that he needed another $8,000 to help finance the downpayment and made a second HBP withdrawal on September 25th of last year. He will take possession of the property on April 1st of this year. On January 20th of this year, he withdrew another $7,000 under the HBP to buy some appliances. Based on his withdrawals, how much does Leonard have to include as taxable income? a) $0 b) $5,000 c) $7,000 d) $15,000
29 Leonard withdrew $10,000 from his RRSP under the Home Buyers' Plan on August 12th of last year and used the amount as a deposit on the purchase of a new house. However, he realized that he needed another $8,000 to help finance the downpayment and made a second HBP withdrawal on September 25th of last year. He will take possession of the property on April 1st of this year. On January 20th of this year, he withdrew another $7,000 under the HBP to buy some appliances. Based on his withdrawals, how much does Leonard have to include as taxable income? a) $0 b) $5,000 c) $7,000 d) $15,000
Chapter4: Additional Income And The Qualified Business Income Deduction
Section: Chapter Questions
Problem 16MCQ: John owns a second home in Palm Springs, CA. During the year, he rented the house for $5,000 for 56...
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Transcribed Image Text:29 Leonard withdrew $10,000 from his RRSP under the Home Buyers' Plan on August 12th of last year
and used the amount as a deposit on the purchase of a new house. However, he realized that he
needed another $8,000 to help finance the downpayment and made a second HBP withdrawal on
September 25th of last year. He will take possession of the property on April 1st of this year. On
January 20th of this year, he withdrew another $7,000 under the HBP to buy some appliances. Based
on his withdrawals, how much does Leonard have to include as taxable income?
a) $0
b) $5,000
c) $7,000
d) $15,000
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