Kim little

Down to Earth Real Estate Advice

 
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When buying real estate in British Columbia, the government imposes a Property Purchase Tax based on the greater of the purchase price or the fair market value of the property. The tax is calculated at 1% of the first $200,000 and 2% of the balance of the value/purchase price.

Property Purchase Tax Exemption

You may qualify for a tax exemption if you, and the property you are purchasing, meet the following guidelines:

  • Your down payment can not exceed 30% of the purchase price
  • The maximum purchase price to qualify for the exemption in Vancouver, Victoria, Squamish, Whistler, and the Fraser Valley is $275,000. In all other areas of the province, the maximum qualifying purchase price is $225,000.
  • You may never have previously owned an interest in your principal residence (anywhere in the world).
  • If you pay more than $11,000 towards the principal of your mortgage within the first year, or if your outstanding mortgage amount is less than 70% at the end of the first year, you will lose your property purchase tax exemption ($9,000 in some parts of the province).
  • You must be a Canadian Citizen or Landed Immigrant and have been a resident of British Columbia for at least 12 consecutive months immediately prior to the purchase.
  • The purchaser must occupy the property as their principal residence within 92 days of completion.
  • Under certain circumstances, the purchase of raw land or a building lot may qualify.
  • Other conditions apply.

OTHER TYPES OF EXEMPTIONS AVAILABLE- If you sell  to or are buying from a " vertically related" family member such as mother, father, grandmother,child,mother in law or grandfather in law etc..

here is a list of full exemptions that exist

 
 
 
 here are  examples of specific  full exemptions of a transfer of a principal residence  ( to related family members)  canhttp://www.sbr.gov.bc.ca/documents_library/bulletins/PTT_005.pdf
 
 
  A full list of possible exemptions can be found here