Examples – When and how to make a repayment
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Examples – When and how to make a repayment
Example 1
Sarah makes LLP withdrawals from 2013 to 2016. She continues her education from 2013 to 2018, and is entitled to claim the education amount as a full-time student for at least three consecutive months on her income tax and benefit return every year. Sarah's repayment period begins in 2018 since 2018 is the fifth year after the year of her first LLP withdrawal. The due date for her first repayment is March 1, 2019, which is 60 days after the end of 2018, her first repayment year.
Example 2
Joseph makes an LLP withdrawal in 2015 for a qualifying educational program he is enrolled in during the same year. He is entitled to the education amount as a full-time student for five months of 2015. Joseph completes the educational program in 2016, and he is entitled to the education amount as a full-time student for five months in 2016. He is not entitled to the education amount for 2017 or 2018. Joseph's repayment period begins in 2018.
Example 3
Betty has an LLP balance of $7,500. Her repayment period is from 2016 to 2025. For her first repayment year, she needs to repay $750, which is 1/10 of the amount she withdrew. Betty contributes $6,000 to her RRSPs in 2016. To designate $750 as her 2016 repayment, she has to file Schedule 7, RRSP and PRPP Unused Contributions, Transfers, and HBP or LLP Activities with her 2016 income tax and benefit return. Betty can deduct the remaining $5,250 she contributed if the RRSP deduction limit shown on her notice of assessment for 2015 is at least $5,250.
- Date modified:
- 2016-10-25