08 Jan 2017

FIRST TIME HOME BUYERS BENEFITS IN B.C.

 

 

first time home buyer in abbotsford bc

FIRST TIME HOME BUYERS ABBOTSFORD B.C

 

Benefits:

First-time homebuyer is eligible to withdraw RRSP for the amount of $25000 without paying any income tax on that. The RRSP issuer will not hold any tax on the amount.

“benefits first time home buyers BC”

The First Time Home Buyers’ Program in BC reduces or eliminates the amount of property transfer tax you pay when you purchase your first home. You must qualify for the program on the basis of qualification you may be eligible for full or partial from the property transfer tax.

In order to qualify the following terms must be met

  • You are to be Canadian citizen or permanent resident
  • You have lived in B.C. for 12 consecutive months immediately before the date you register the property or
  • filed at least 2 income tax returns as a B.C. resident in the last 6 years
  • You have never owned an interest in a principal residence anywhere in the world ( Please note that the property own is all around the world) at any time
  • have never received a first time home buyers’ exemption or refund

The property must:

  • be located in B.C.
  • only be used as your principal residence
  • have a fair market value (Please pay attention to fair market value) of:
  • $425,000 or less if registered on or before February 18, 2014, or
  • $475,000 or less if registered on or after February 19, 2014
  • be 0.5 hectares (1.24 acres) or smaller

You may qualify for a partial exemption from the tax if the property:

has a fair market value less than:

  • $450,000 if registered on or before February 18, 2014, or
  • $500,000 if registered on or after February 19, 2014
  • is larger than 0.5 hectares
  • has another building on the property other than the principal residence
  • Find out the amount of your exemption if you qualify.

NOTE >>>> If you don’t qualify because you are not a Canadian citizen or permanent resident, but you become one within 12 months of when the property is registered, you may apply for a refund of the tax.

  • You will be penalized with double amount of property tax if you ever owned a house anywhere around the world or not a first time home buyer.
  • In a case of existing home, you must move within 92 days from the date of the registration of home on your name.
  • In case you are building a new house on a vacant lot, you still get the tax exemption as long as the:
  • You long as you build and move within 1 year of the date of the registration of property on your name and
  • have a fair market value (Please pay attention to fair market value) of:
  • $425,000 or less if registered on or before February 18, 2014, or
  • $500,000 or less if registered on or after February 19, 2014
  • You must live in the house for the remainder of the year as your primary residence. If you move out before the year you may be able to still keep the part of tax exemption.
  • In the case of death or property is transferred due to divorce or separation you still can keep the tax exemption.

FORMULA FOR PROPERTY TRANSFER TAX IN BC

1% on first $200,000

2% on the remainder up to 2 million

3% over 2 million

Example:

1) House price :

$500,000

1% on first $200,000 = $2000

2% on balance $300,000 = $6000

Total= $8000

2) House price :

$2,000,000 ( 2 million)

1% on first $200,000 = $2000

2% on balance $1,800,000 = $18000

Total= $20000

3) House price :

2,500,000 (2.5 million)

1% on first $200,000 = $2000

2% on $1,800,000 = $18000

3% on $500,000 = $15000

Total = $35000

Disclaimer: The information should not be relied upon. Please check with local authorities for exact information

Written by: Pervinder Khangura @homeZfinder