My client received a T5008 for an Home buyers Plan RRSP withdrawal. Should a capital gain be EXEMPT from being taxed since it is an HBP withdrawal? How to report this?

My client received a T5008 for a Home buyers Plan RRSP withdrawal. Since this is HBP withdrawal, how would I report this to avoid capital gains tax?


This is odd.  RRSP withdrawals are reported on a T4RSP, not a T5008.  If this was an HBP withdrawal, the amount would be in Box 27.  So your client needs to go back to the issuing company and find out what's going on.  It may be that, while he thought he was doing an HBP withdrawal, he was actually just selling some shares.  If the latter, then the capital gain is reportable but he doesn't have to repay his RRSP down the line.

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