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Dimitri has a $6,000 outstanding Home Buyers Plan (HBP) balance. He...

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Dimitri has a $6,000 outstanding Home Buyers Plan (HBP) balance. He...

Dimitri has a $6,000 outstanding Home Buyers Plan (HBP) balance. He is required to make minimum annual repayments of $1,000 for each of the years 2021 through 2026 inclusive, after which his outstanding balance to be repaid will be zero. If Dimitri doubles his annual repayment in 2021, and pays $2,000 instead of the required annual minimum repayment of $1,000, which of the following statements is true?

The extra $1,000 repayment will shorten Dimitri's required annual minimum repayment schedule by one year, but he will be required to continue the $1,000 annual repayments with the last payment scheduled for 2025, not 2026

The extra $1,000 repayment will reduce the outstanding balance to $4,000 and Dimitri's required annual minimum repayment will be reduced to $800 for each of the years 2022 through 2026 inclusive

The extra payment will allow Dimitri to skip the 2022 repayment without incurring any tax penalty

The extra payment will be disallowed because it is not allowed the change to annual repayment amount or the original repayment schedule

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Answered by mainamercy7 on coursehero.com
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