What you need to know about the new home buyer tax in 2019!
Thanks to Tony Spagnuolo for providing us with this great information!
Today we’re going to talk about the first time home buyer exemption for the property transfer tax.
This page here outlines the criteria that needs to be met in order for you to qualify as a first time home buyer. So first, you must never have owned a principal residence anywhere in the world at any time. The key thing to take note is as a ‘Principal Residence’, so if you’ve had an investment properties but you’ve never lived in those, you may still qualify as a first time buyer. You must be a Canadian citizen or permanent resident.
You must be a B.C. resident for the last 12 months or have filed income tax returns for two of the past six years. In order for there to be a full exemption, the price must be under $500,000 there. You may qualify for a partial exemption for homes between 500,520 $5,000. After that you must pay the full tax amount. So $525,001 is the full tax. It’s not just tax on the amount over five 25,000, it’s take on the entire amount.
To qualify for the exemption, you must move in within 92 days. It must be your principle residence. It has to be your principle residence for at least a year. And the final point in order to qualify for this exemption, is that the property can’t be too big (0.5 hectares or 1.24 acres). If you’re buying a piece of property, to ensure you are exempt, you must meet the above requirements, and then you qualify as a first time home buyer and you avoid extra tax!
Thanks Tony! For more informative information about real estate and tax related issues, click HERE.
Check out our tips and tricks to help you as a first time home Seller HERE!
For further information about the real estate market in Vancouver and current trends, contact Top Vancouver Realtor Leo Wilk.