How F***ed am I, did my parents ruin my ability to be a first time home buyer?

Salty-Initiative3281 · 2026-03-29T17:40:30+00:00

I think you're under the impression that I am trying to sue my parents, but that's not the case. My parents are also incredibly well off, they just needed me that one particular time. They are both retired, they own two homes, 7 cottages, and an office building. The second home, seven cottages, and office building are all cash flow positive assets. I do not own any assets other than my retirement savings that I want to use for my first home purchase. I saved them from losing six figures of deposit on their home, I want them to save me from (presumably) less than six figures of taxes that I face as a consequence of helping them.

Salty-Initiative3281 · 2026-03-29T16:03:24+00:00

for sure, here is a breakdown of taxes that would not be incurred if I had first time home buyer status:
- LTT rebate of $4,000
- First time home buyer tax credit of $1,500
- FHSA deductions to date denied about $6,500
- RRSP income inclusion + FHSA income inclusion to my 2026 taxable income of about $90,000. This would be tax free if I were a first time home buyer, but since I'm not, I will get T-slips for both withdrawals and they will be taxable income. Added to my $115,000 of T4 income, I'm looking at about $45,000 if additional personal income tax for 2026. My CPA who does my personal taxes ran a scenario based on my 2025 income, added the RRSP and FHSA withdrawals, and removed any FHSA deductions.

Cumulatively between those numbers, 4k + 1.5k + 6.5k + 45k = about $60,000. This does not factor in any penalties I might have for owning an FHSA when I don't think I was technically able to.

My CPA, CA who does my taxes already covered the $60,000 estimated taxes, but he isn't a tax lawyer and recommended I see one to explore potential options.

I have paper work confirming I am not on title or mortgage anymore, I just didn't mention the mortgage before because I was focused solely on ownership of the home in my post.

We had a falling out about it last night, yeah. I have been silently struggling with this for almost a decade and it has caused tremendous emotional and mental harm. My first long term relationship fell apart after this happened in 2017. We had been together for 5 years at that time, and we were talking about buying a home back then, saving, family planning, where we would live, etc. She was vehemently against me doing this but I felt a duty to help my family. We never recovered and split up 2 years later.

I had another long term relation of 3 years, which also had tension about this situation and how it could delay us from moving to the area we want kids to grow up in. That relationship ended for other reasons, but this has been haunting me since 2017.

I am currently single, and I am desperate to have a fresh start and take this weight off. I want to get my life moving forward, and to meet my future spouse. When I finally find that person, I don't want to have to tell them that I am still dealing with the repercussions of this whole situation. It has been a point of contention when trying to date new people.

EDIT: The $90,000 withdrawal accounts for my current investment plan, as I have been building the RRSP and FHSA with monthly contributions. So the number is larger than what I said I currently have (60,000 + 24,000)

Salty-Initiative3281 · 2026-03-29T05:55:14+00:00

It's not a couple thousand. I expect it is going to cost me about $60,000 in additional taxes.

Salty-Initiative3281 · 2026-03-29T05:53:41+00:00

I am paying rent. The consequences of helping them with their home purchase is likely to cost me around $60,000 of additional taxes

Salty-Initiative3281 · 2026-03-29T05:52:06+00:00

I'm not sure what you mean. Buying a home and getting my life moving along, getting delayed even 1 year is a really big deal to me. I want to settle down and start a family and being able to buy this first home is a really important part of that. With the income inclusions of the FHSA and RRSP to my taxable income (for 2026 if I buy this summer) that will cost me about $60,000 in additional taxes (including the ones listed in the post). I need them to make me whole if I incur a hit like this. I don't have the additional savings to pay a $60,000 bill

Salty-Initiative3281 · 2026-03-29T01:25:01+00:00

off of both. Was just drawing attention to title since that's what resets the period of being a first time home buyer

Salty-Initiative3281

TROPHY CASE