Edwin Lam 林玉德†

1-604-377-7572†††

Your Friend

Your REALTORģ

 

Real Estate Associate Broker 地產代理††

Buying and Selling Real Estate in Metro Vancouver, BC, Canada,

please let me help you, make your dream come true.

††††† 加拿大卑詩省, 哥華大都會 , 物業買賣 ,交托我手 , 實現你的夢!††

 

Buyerís Guide

(5) Property Transfer Tax  

The amount of tax you pay is based on the fair market value of the land and improvements (e.g. buildings) on the date of registration unless you purchase a pre-sold strata unit. The tax is charged† on the fair market value of a property at a rate of:

1% on the first $200,000, and

2% on the portion of the fair market value greater than $200,000 and up to and including $2,000,000, and

3% on the portion of the fair market value greater than $2,000,000.

5% on the portion of the fair market value greater than $3,000,000.

Effective Feb 21, 2018, the foreign buyer tax will increase to 20 per cent from 15 per cent and will be extended to the Fraser Valley, Capital, Nanaimo, and Central Okanagan Regional Districts. This new tax will apply to foreign nationals or foreign-controlled corporations, but not Canadian residents of overseas origin.

First Time Home Buyers' Program

The First Time Home Buyers' Program reduces or eliminates the amount of property transfer tax you pay when you purchase your first home. If you qualify for the program, you may be eligible for either a full or partial exemption from the tax.

If one or more of the purchasers donít qualify, only the percentage of interest that the first time home buyer(s) have in the property is eligible.

For example, if you qualify and purchase a property with a fair market value of $400,000 with a person that doesnít qualify you would still qualify. If you owned a 60% interest in the property, 60% of the tax amount would be eligible for the exemption.

Do I Qualify?

To qualify for a full exemption, at the time the property is registered you must:

be a Canadian citizen or permanent resident

 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

have never owned an interest in a principal residence anywhere in the world at any time 

 have never received a first time home buyers' exemption or refund

and the property must:

 be located in B.C.

only be used as your principal residence

have a 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.

If you donít 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 property transfer tax. To apply for a property transfer tax refund in this case, call (250) 387-0604. However, if youíre a foreign national or foreign corporation, you canít be refunded any additional property transfer tax you may have paid.

Apply

To apply for the First Time Home Buyers' Program you need to complete the First Time Home Buyers' Property Transfer Tax Return when you or your legal professional register the property transfer.

After you have applied you must meet additional requirements during the first year you own the property to keep the tax exemption.

Penalty for False Declaration

All applications are reviewed. You will be charged a penalty equal to double the tax if you falsely declare that:

 you have never owned an interest in a principal residence anywhere in the world at any time, or

you have never received a first time home buyers' exemption or refund

First Year of Ownership

At the end of the first year you own the property you will receive a letter. The letter is to conditionally confirm that you meet the occupancy and property value requirements after you:

purchased an existing home, or 

purchased vacant land and built a home

Existing Home

To keep the tax exemption you must have:

moved into your home within 92 days of the date the property was registered

 continued to occupy the property as your principal residence for the remainder of the first year

You may keep part of the exemption if you moved out before the end of the first year.

If the owner passed away, or the property is transferred because of a separation agreement or a court order under the Family Law Act before the end of the first year, you still qualify to keep the tax exemption.

Built New Home

If you registered a vacant lot and built your own home, to keep the tax exemption:

 the fair market value of the land when you registered the property plus the cost to build your home must be:

 $450,000 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 have built and moved into your home within 1 year of the date the property was registered

 you must have continued to occupy the property as your principal residence for the remainder of the first year

You may keep part of the exemption if you moved out before the end of the first year.

If the owner passed away, or the property is transferred because of a separation agreement or a court order under the Family Law Act before the end of the first year, you still qualify to keep the tax exemption.

For getting the updated information, please visit the Government website.

http://www.gov.bc.ca/gov/content/taxes/property-taxes/property-transfer-tax

 

If you need my professional real estate service, please call

Edwin Lam

Associate Broker

604-377-7572

edwin_realtor@yahoo.com  

Not intended to solicit properties already listed for sale.

There is nothing more important to my continued success as a Realtor than the referrals I receive from you who recommend my service to others.