The Liberal government of BC just presented their budget today in Victoria. Amongst a number of changes, there was one that stood out for the real estate industry. In particular, it was a new tax credit for first-time home buyers of new homes.
Note that this only applies to NEW homes. Also, it only applies to first-time home buyers. That means if you are buying an older home or have owned a home in the past, this does not apply to you. Also, I should note that this is not official yet. It must be voted on in the legislature before it takes affect.
If approved, new home-buyers will qualify for a one-time refundable personal income tax credit of up to $10,000. It will be in effect from February 21, 2012 to March 31, 2013.
You will qualify as a first-time new home buyer if:
- You purchase or build an eligible new home in BC;
- You have never previously owner a primary residence;
- You file a 2011 BC resident personal income tax return;
- You are eligible for the BC HST New Housing Rebate;
- You intend to live in the home as your primary residence.
The bonus is equal to 5% of the purchase price up to a maximum of $10,000. If you make over $150,000/yr the bonus gets reduced by $0.20 per dollar of income. At $200,000 of income you would get no bonus. For couples, it is reduced by $0.10 per dollar of income so that at $250,000 there would be no bonus.
You should consult an accountant for tax advice specific to your situation.
You can view the government fact sheet on the bonus here.
More Info on Vancouver Real Estate
For more information on Vancouver real estate market go here.
If you are thinking of buying or selling, or just have questions, contact me here or send me a quick email.
Copyright © 2012 by Sebastian Albrecht, Vancouver Realtor with Royal LePage Westside ”B.C. First Time New Home Buyer Bonus Explained”
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