Property Transfer Tax Threshold Limit Increase

(February 19, 2014 , posted in News)

First Time Home Buyers can now purchase a home up to $475,000 and be exempt from the full Property Transfer Tax. Between $475,000 and $500,000, there is a partial rebate. This is an increase of $50,000 from the previous threshold of $425,000.

Requirements for First Time Home Buyers' Exemption

Purchaser:
  • you are a Canadian Citizen, or a permanent resident as determined by Immigration Canada,
  • you have lived in British Columbia for 12 consecutive months immediately before the date you register the property, or you have filed 2 income tax returns as a British Columbia resident during the 6 years before the date you register the property,
  • you have never owned an interest in a principal residence anywhere in the world at anytime, and
  • you have never received a first time home buyers’ exemption or refund.
The property you purchase qualifies if:
  • the fair market value of the property is not more than the current threshold of $475,000,
  • the land is 0.5 hectares (1.24 acres) or smaller, and
  • the property will only be used as your principal residence.
If the property does not meet all of these requirements, you may still qualify for a partial exemption.

A proportional exemption is provided for eligible residences with a fair market value of up to $25,000 above the threshold (i.e. up to $500,000). 

Partial exemption example (Assume price is $480,000)

PTT = $200,000 x 1% + ($480,000-$200,000) x 2% = $7,600

PTT Exemption = ($500,000 – $480,000) = 80%
                          ($500,000 – $475,000)

Purchaser pays full tax ($7,600) less 80% or $1,520.00

For more information use this link
 
Chris Frederickson | Sutton Group West Coast Realty | 604.306.1062 | chris@chrisfrederickson.ca 

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