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Budget 2019 – Poor wording requires 2 ex-spouses within 5 years for Home Buyers Plan

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This is one of those rare times I hope I am wrong in my interpretation, and look forward to being proven wrong by my professional colleagues.

On March 19, 2019 the federal government tabled its election-year budget. One of the newest and strangest provisions is the ability for people going through a separation or divorce to potentially have access to their RRSP under the Home Buyers Plan.

Now in my article and podcast entitled: “Escape Room – The NEW Small Business Tax Game – Family Edition” with respect to the Tax On Split Income (TOSI) rules, I made a tongue in cheek argument that people will be better off if they split, because then the TOSI rules won’t apply.

In keeping with the divorce theme, beginning in the year of hindsight, 2020, the federal government is giving you an incentive to split up and get your own place.

However, there are a few hoops:

On page 402 of the budget, under new paragraph 146.01(2.1)(a), at the time of your RRSP withdrawal under the Home Buyers Plan, you must make sure that:

  • – the home you are buying is not the current home you are living in and you are disposing of the interest in the current home within two years; or
  • – you are buying out your former spouse in your current home; and

you need to:

  • be living separate and apart from your spouse or common-law partner;
  • have been living separate and apart for a period of at least 90 days (markdown October 3, 2019 on the calendar),
  • began living separate and apart from your spouse or common-law partner, this year, or any time in the previous 4 years (ok, you don’t have to wait for October); and…

…here is where the tabled proposed legislation gets messy.

Proposed subparagraph 146.01(2.1)(a)(ii) refers to where the individual

  • wouldn’t be entitled to the home buyers plan because of living with a previous spouse in the past 4 years that isn’t the current spouse they are separating from

“(ii) in the absence of this subsection, the individual would not have a regular eligible amount because of the application of paragraph (f) of that definition in respect of a spouse or common-law partner other than the spouse referred to in clauses (i)(A) to (C), and…”

The problem with the wording of this provision, is that it is written in the affirmative by the legislators using the word ā€œandā€. This means, you must be able to answer ā€œtrueā€ to all the tests for the entire paragraph to apply.

The way I read this, the only way to answer ā€œtrueā€ to this subparagraph is if you have a second spouse (ie: spouse other than the spouse referred to) that you shared a home with and you split from in the past four years.

If you have a second spouse that you shared a home with in the past four years, then ā€œparagraph (f)ā€ in the definition of ā€œregular eligible amountā€ would apply and the answer would be ā€œtrueā€.

If the answer is “true” you can then get access to your RRSP Home Buyers Plan.

If you don’t have a second spouse then, even though “paragraph (f)” might be met, the phrase ā€œspouse other than the spouse referred toā€ would not be met, and therefore the answer would be ā€œfalseā€.

This would, in turn, cause the entire logic test of the provision to be ā€œfalseā€ and so you would not be able to take out a ā€œregular eligible amountā€ from your RRSP for the Home Buyers plan because you do not meet the provisions.

If my interpretation is correct then I would really be curious as to what part of the economy they are trying to stimulate.

In my opinion the legislation could be fixed with a simple edit:

“(ii) in the absence of this subsection, the individual would not have a regular eligible amount because of the application of paragraph (f) of that definition in respect of:

(A) a spouse or common-law partner; or

(B) a spouse or common-law partner other than the spouse referred to in clauses (i)(A) to (C); and…”


Cory G. Litzenberger, CPA, CMA, CFP, C.Mgr is the President & Founder of CGL Strategic Business & Tax Advisors; you can find out more about Cory’s biography at http://www.CGLtax.ca/Litzenberger-Cory.html

CEO | Director CGL Tax Professional Corporation With the Income Tax Act always by his side on his smart-phone, Cory has taken tax-nerd to a whole other level. His background in strategic planning, tax-efficient corporate reorganizations, business management, and financial planning bring a well-rounded approach to assist private corporations and their owners increase their wealth through the strategies that work best for them. An entrepreneur himself, Cory started CGL with the idea that he wanted to help clients adapt to the ever-changing tax and economic environment and increase their wealth through optimizing the use of tax legislation coupled with strategic business planning and financial analysis. His relaxed blue-collar approach in a traditionally white-collar industry can raise a few eyebrows, but in his own words: ā€œPeople don’t pay me for my looks. My modeling career ended at birth.ā€ More info: https://CGLtax.ca/Litzenberger-Cory.html

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Crime

Former Tim Walz appointee wanted for Minnesota shootings

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Quick Hit:

Vance Luther Boelter, a former appointee of Minnesota Gov. Tim Walz, is wanted for Saturday’s targeted shootings that killed a state lawmaker and seriously injured another.

Key Details:

  • Authorities say Boelter first shot Sen. John Hoffman and his wife at their Champlin home before killing former House Speaker Melissa Hortman and her husband in nearby Brooklyn Park.

  • Dressed in police-style gear, Boelter reportedly exchanged gunfire with officers before retreating from the scene and escaping.

  • Investigators found a list of targeted politicians, including Gov. Walz and Lt. Gov. Peggy Flanagan, as well as anti-Trump flyers reading ā€œNo Kings.ā€

Diving Deeper:

Law enforcement sources said Saturday that Vance Luther Boelter, 57, is the primary suspect in a string of targetedĀ shootingsĀ that left former Minnesota House Speaker Melissa Hortman and her husband dead, and Sen. John Hoffman and his wife hospitalized. FirstĀ reportedĀ by The Blaze, Boelter—a former appointee of both Gov. Tim Walz and former Gov. Mark Dayton—has not yet been apprehended.

The violence began early Saturday morning in Champlin, where the gunman reportedly posed as a police officer, dressed in black body armor and carrying a Taser, badge, and radio. Surveillance footage showed him knocking on the Hoffmans’ front door while wearing a cowboy hat and wielding a flashlight. The couple was shot multiple times and rushed into surgery. Both are expected to survive.

Shortly after the Champlin attack, police were dispatched to check on Hortman’s Brooklyn Park residence. According to Police Chief Mark Bruley, officers encountered what looked like a marked police vehicle in her driveway and a man in uniform exiting the home. When they approached, the man opened fire and retreated into the house. Officers returned fire but did not apprehend him. Hortman, 55, was found dead inside, alongside her husband. Their family dog, Gilbert, was also shot.

Police say Boelter left behind a manifesto naming 70 individuals—ranging from elected officials like Walz and Flanagan to abortion providers and Planned Parenthood affiliates.

The suspect also carried ā€œNo Kingsā€Ā flyers, referencing a national day of protest against President Donald Trump. These same flyers were promoted online as part of anti-Trump demonstrations across the country on Saturday. In response to the shootings, the Minnesota State Patrol urged residents to stay home.

Boelter reportedly ran a private security firm, Praetorian Guard Security Services, which offered armed patrols for a steep monthly fee. He held appointments under two Democrat governors—first in 2016 on the Workforce Development Council, and again in 2019 when Gov. Walz tapped him for the state’s Workforce Development Board.

His apparent political motivations are under review, especially following recent controversy surrounding Hortman’s vote toĀ stripĀ state health benefits from illegal immigrants. Just days before her murder, Hortman had broken with her party to side with Republicans on the issue—providing the deciding vote after a tense budget standoff. ā€œThey’re right to be mad at me,ā€ she told reporters after the vote, acknowledging anger within her caucus.

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Crime

Manhunt on for suspect in shooting deaths of Minnesota House speaker, husband

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Vance Luther Boelter, wanted in the murders of former Minnesota House speaker and her husband, shown in image from video Saturday.

From The Center Square

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Second lawmaker, his wife also shot; suspect remains at large

Two Minnesota state lawmakers who are members of the Democratic-Farm-Labor Party were shot early Saturday by a person posing as a law enforcement officer just north of Minneapolis.

House Speaker Emeritus Melissa Hortman and her husband were shot and killed in what Gov. Tim Walz called a politically-motivated assassination. The suspect, identified as Vance Boelter, 57, remains at large and a manhunt is ongoing. Authorities said he no longer is in the area of the shootings.

 

Gov. Walz on Shooting of Minnesota Legislators: ‘An Unspeakable Tragedy’. 6/14/25

Source: Minnesota Department of Public Safety

“My good friend and colleague, Speaker Melissa Hortman and her husband Mark, were shot and killed early this morning in what appears to be a politically-motivated assassination,” Walz said at a news conference. “Our state lost a great leader, and I lost a dearest of friends.”

State Sen. John Hoffman, DFL-Brooklyn Park, and his wife also were shot about 2 a.m., and Hortman and her husband were found about 90 minutes later.

Walz said the Hoffmans were each shot multiple times but he was hopeful for their recovery.

Law enforcement issued a shelter-in-place order for an area around Edinburgh Course that continued into the hours Saturday but has since been lifted. The suspect was seen wearing blue pants, a blue shirt, body armor, and reportedly driving a dark SUV with lights meant to make it appear like a police vehicle.

The suspect, Boelter, was appointed by Walz to serve on the Governor’s Workforce Development Board in 2019. Various media outlets reported that he is the director of Praetorian Guard Security Services, where he had access to police-like security equipment. Media outlets also reported thatĀ Boelter had a list of about 70 names in his vehicle which included the lawmakers who were shot, other lawmakers and abortion providers.

State officials are encouraging residents to not attend “No Kings” protests at the state capitol and across Minnesota. “No Kings” flyers were found in the suspect’s vehicle, law enforcement said.

FNF The scene near a shooting of Minnesota lawmakers
Law enforcement at the scene of a shooting in Minneapolis

The “suspect exploited the trust of our uniforms, what our uniforms are meant to represent,” Public Safety Commissioner Bob Jacobson said. “That betrayal is deeply disturbing to those of us who wear the badge with honor and responsibility.”

According to authorities, the gunman allegedly escaped through a back door of Hortman’s house following an exchange of gunfire with police.

President Donald Trump also released a statement on X, posted by White House Press Secretary Karoline Leavitt.

“Our Attorney General, Pam Bondi, and the FBI are investigating the situation, and they will be prosecuting anyone involved to the fullest extent of the law,” Trump said. “Such horrific violence will not be tolerated in the United States of America. God Bless the great people of Minnesota, a truly great place!”

The FBI said it is offering a reward of up to $50,000 for information leading to the arrest ofĀ Boelter.

Drew Evans, superintendent of theĀ Minnesota Bureau of Criminal Apprehension, said Saturday that officers arrived at the Hortman residence as part of a routine check on lawmakers in the area and exchanged gunfire with the suspect, who managed to flee.

Brooklyn Park Police Chief Burley said officers knocked on the Hortmans door and were met by what appeared to be a police officer wearing police gear, a gun, a taser and a badge. Officers and the suspect exchanged gunfire in the home before the suspect fled out the rear of the house.

Burley also said the suspect was driving an SUV that looked like a police vehicle with lights. The car was impounded, and Burley said the suspect is on foot. He Ā encouraged citizens to not answer the door for police officers and instructed Brooklyn Park police officers to not approach citizens alone, only in groups of two or more.

Burley said several people have been detained, and police are looking for others of interest.

Burley said a manifesto was found in the suspect’s vehicle that identified several other lawmakers. Both Hoffman and Hortman were on the list of people found in the car, Evans said.

Life-saving efforts were given to the Hortmans at the scene, Evans said.

“This was an act of targeted political violence. Peaceful discourse is the foundation of our democracy.We don’t settle our differences with violence at gun point. We must all stand against political violence,” Walz, also a DFL party member, said. “This tragic act in Minnesota should serve as a reminder that democracy and debate is a the way to settle our differences and move to a better place.”

The shootings happened seven miles away from each other, and law enforcement officials have called both shootings ā€œtargeted.ā€

Law enforcement was dispatched to the homes of several other state lawmakers – both Democrats and Republicans – in the Twin Cities area for protection overnight. Those lawmakers were told not to answer the door if an officer comes to it, but confirm with 911 before answering.

U.S. Sen. Amy Klobuhar, D-Minn., was shocked by the news.

ā€œThis is a stunning act of violence. I’m thankful for all the law enforcement who are responding in real time. My prayers are with the Hortman and Hoffman families. Both legislators are close friends and devoted to their families and public service,ā€ Klobuchar said on social media.

Republican House Speaker Lisa Demuth, R-Cold Spring, called the shootings evil and asked for prayers.

ā€œI am shocked and horrified by the evil attack that took place overnight. Please lift up in prayer the victims along with the law enforcement personal working to apprehend the perpetrator,ā€ Demuth said on social media.

Walz activated the state emergency operations center early Saturday.

Hoffman was first elected to the Senate in 2012 and currently chairs the Human Services Committee.

Hortman was first elected in 2002 and was elected as speaker of the house in 2018. She is the current speaker emeritus.

She was also one of four DFL members to break with the party Monday and join Republicans to pass a state budget and end state health care services for noncitizens after a long and contentious special session.

The initial budget vote ended in a tie, before Hortman and three other DFL members broke ranks and joined Republicans to pass the legislation.

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