Home buyers - RRSP Withdrawl in Dec 2020, Closing date is Feb 2021. Do I claim the Home Buyers Credit for 2020 or 2021?

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To be eligible for the Home Buyers’ Tax Credit, you must meet both of these criteria:

1. You or your spouse or common-law partner purchased a qualifying home.
2. You are a first-time homebuyer, which means that you did not live in another home owned by you or your spouse or common-law partner in the year of the acquisition or in any of the four preceding years.

According to Canada Revenue Agency, the Home Buyers’ Plan (HBP)  allows eligible first-time homebuyers to withdraw up to $35,000 tax-free from their RRSP (for withdrawals made after March 2019. Withdrawals made before March 2019 could not exceed $25,000), to be used towards a down payment on the purchase of the home.  March 1, 2021, is the deadline for contributing to an RRSP for the 2020 tax year. So you need to claim credit for 2020.

Please visit these site for more information: https://turbotax.intuit.ca/tips/who-can-benefit-from-the-home-buyers-tax-credit-5203

https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/rrsps-related-plans/importan...

https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/rrsps-related-plans/what-hom...