Property Purchase Tax Exemption
To qualify for an exemption to the Property Purchase as a First Time Home Buyer, the following criteria must be met:
· As of February 2014, to obtain full exemption, the purchase price must not exceed $475,000. A partial exemption is available for homes with a value upto $500,000 (see formula below);
· 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 must never have owned an interest in a principal residence anywhere in the world at any time;
· You have never received a first time home buyers' excemption or refund;
· The property will only be used as your principal residence.
Requirements to Keep the Exemption
· You must move into the property within ninety-two days after registration of the purchase of the property and reside in the property for at least one year;
· For more information on the requirements to maintain your exemption please click here
To calculate the amount of tax payable on homes between $425,000 and $450,000, use the following formula:
Amount of PTT X ($475,000 - Purchase Price)
For example, assume a house is being purchased for $435,000. Normal Property Transfer Tax would be $6,700 (i.e., 1% on the first $200,000 and 2% on remainder). Using the formula:
$6,700 X ($475,000 - $460,000) = $4,020
Subtract $4,020 from $6,700 leaving $2,680 as the amount owing for the Property Transfer Tax.
For details on the tax exemption click here and for more general information on the Property Transfer Tax click here.