Subject to approval by the legislature, the B.C. government intends to implement a temporary BC First-Time New Home Buyers’ Bonus. Effective February 21, 2012, to March 31, 2013, the bonus is a one-time refundable personal income tax credit worth up to $10,000.
Requirements to Qualify for the Bonus:
ELIGIBLE FIRST-TIME NEW HOME BUYER
You will qualify as a first-time new home buyer if:
ELIGIBLE NEW HOME
An eligible new home includes new homes (i.e.,newly constructed and substantially renovatedhomes) that are purchased from a builder andthat are owner-built. The bonus will be availablein respect of new homes purchased from abuilder where:
Amount of the Bonus
MAXIMUM AMOUNT
The bonus is equal to 5% of the purchase price of the home (or in the case of owner-built homes, 5% of the land and construction costs subject to HST) to a
maximum of $10,000.
PHASE-OUT FOR HIGHER INCOME EARNERS
The bonus will be reduced based on an individual’s/couple’s net income (line 236 of your income tax return) using the following formula:
ELIGIBLE FIRST-TIME NEW HOME BUYER
You will qualify as a first-time new home buyer if:
- You purchase or build an eligible new home located in B.C.
- You, or for couples, you and your spouse or common law partner, have never previously owned a primary residence
- You file a 2011 B.C. resident personal income tax return, or if you move to B.C.after December 31, 2011, you file a 2012 B.C.resident personal income tax return (you will not be eligible for the bonus if you move to B.C. after December 31, 2012)
- You are eligible for the B.C. HST New Housing Rebate
- You intend to live in the home as your primary residence.
ELIGIBLE NEW HOME
An eligible new home includes new homes (i.e.,newly constructed and substantially renovatedhomes) that are purchased from a builder andthat are owner-built. The bonus will be availablein respect of new homes purchased from abuilder where:
- A written agreement of purchase and sale is entered into on or after February 21, 2012
- HST is payable on the home (e.g.,HST will generally be payable if ownership or possession of the home transfers before April 1, 2013 – see further details below)
- No one else has claimed a bonus in respect of the home
- A written agreement of purchase and sale in respect of the land and building is entered into on or after February 21, 2012
- Construction of the home is complete, or the home is occupied,before April 1, 2013
- No one else has claimed a bonus in respect of the home.
Amount of the Bonus
MAXIMUM AMOUNT
The bonus is equal to 5% of the purchase price of the home (or in the case of owner-built homes, 5% of the land and construction costs subject to HST) to a
maximum of $10,000.
PHASE-OUT FOR HIGHER INCOME EARNERS
The bonus will be reduced based on an individual’s/couple’s net income (line 236 of your income tax return) using the following formula:
- For single individuals, the bonus is reduced by 20 cents for every dollar in net income over $150,000 (bonus is reduced to zero at $200,000 net income).
- For couples, the bonus is reduced by 10 cents for every dollar in family net income over $150,000 (bonus is reduced to zero at $250,000 family net income)
Quick Contact
Chris Frederickson Sutton Group West Coast Realty
Mobile: (604) 306-1062 Phone: (604) 714-1700 Fax: (604) 738-1888 Email: chris@chrisfrederickson.ca
#301-1508 W. Broadway Street Vancouver BC V6J 1W8
Mobile: (604) 306-1062 Phone: (604) 714-1700 Fax: (604) 738-1888 Email: chris@chrisfrederickson.ca
