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

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 “and”. This means, you must be able to answer “true” to all the tests for the entire paragraph to apply.
The way I read this, the only way to answer “true” 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 “paragraph (f)” in the definition of “regular eligible amount” would apply and the answer would be “true”.
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 “spouse other than the spouse referred to” would not be met, and therefore the answer would be “false”.
This would, in turn, cause the entire logic test of the provision to be “false” and so you would not be able to take out a “regular eligible amount” 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
International
Charlie Kirk Shooting Suspect Revealed: Here’s What His Ammunition Said

These are the words of someone truly deranged and filled with hate.
Investigators say Robinson had recently grown more political, mentioned Kirk by name, and openly opposed his beliefs.
After the killing, Robinson reached out to a family friend with a confession. He had also been communicating extensively on Discord, a group-chat platform popular among gamers, where investigators now confirm he was active, Fox News reports.
Authorities also revealed the disturbing words engraved on the ammunition.
Fired casing:
“Notices bulges. OwO (face-emoticon) What’s this?”
Unfired casings:
“Hey fascist! Catch!” followed by ➡️ and then ⬇️⬇️⬇️
“O Bella Ciao, Bella Ciao, Bella Ciao Ciao Ciao”
“If you read this, you are gay lmao”
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At the close of the press conference, Utah Governor Spencer Cox grew visibly emotional as he ended with words from Charlie Kirk himself. It was an eye-watering moment.
America would do well to remember the truths Charlie Kirk never stopped preaching.
“When people stop talking, that’s when you get violence.”
“The weak can never forgive. Forgiveness is the attribute of the strong. The only way out of the labyrinth of suffering is to forgive. Welcome without judgment, love without condition, forgive without limit. Always forgive your enemies. Nothing annoys them so much.”
“When things are moving very fast and people are losing their minds, it’s important to stay grounded. Turn off your phone, read scripture, spend time with friends, and remember, Internet fury is not real life.”
“When you stop having a human connection with someone you disagree with, it becomes a lot easier to commit violence. What we as a culture have to get back to is being able to have reasonable agreement where violence is not an option.”
NOTE: In the wake of Charlie Kirk’s tragic death, VigilantFox.com is fully committed to covering this story from every angle.
We believe this is a pivotal moment that will shape the future of left vs. right, as we work to uncover exactly what happened — and why.
We will not let up in covering this story and giving it the full attention it deserves. Thank you for your support.
J.D. Tuccille
After Charlie Kirk’s Murder, Politicians Can Back Away From the Brink, or Make Matters Worse

The political class has been pushing the country towards a conflict nobody should want.
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