Save money on your home with these 6 tax tips
1. BC Property Transfer Tax (PTT) First-Time Home Buyers’ Program
Qualifying first-time buyers may be exempt from paying the PTT of one per cent on the first $200,000 and two per cent on the remainder of the purchase price of a resale home priced up to $500,000. There is a proportional exemption for homes priced between $500,000 and $525,000. At $525,000 and above exemption is nil. Foreign entities and taxable trustee are not eligible for the exemption.
2. First-Time Home Buyers’ Tax Credit (HBTC)
Eligible persons who bought a qualifying home in 2019 can claim the home buyers’ amount of $5,000 on Line 369 of Schedule 1 when filing their 2019 income tax and benefit returns. For 2019, the maximum home buyers’ tax credit (HBTC) is $750, which is calculated by multiplying the home buyers’ amount of $5,000 by the federal non-refundable tax credit rate of 15 per cent (equal to the lowest personal income tax rate for the year).
3. BC Property Transfer Tax Newly Built Home Exemption
Qualifying buyers of new homes may be exempt from paying the PTT on a newly built home or newly subdivided unit priced up to $750,000 and a partial exemption on newly built homes priced $750,000 to $800,000.
4. GST/HST New Housing Rebate
New home buyers can apply for a rebate for the five per cent GST if the purchase price is $350,000 or less. The rebate is equal to 36 per cent of the GST to a maximum rebate of $6,300. There is a proportional GST rebate for new homes that cost between $350,000 and $450,000. There’s no rebate for homes priced at $450,000 and above.
5. BC Property Tax Deferment Programs
Property Tax Deferment Program for Seniors: qualifying home owners aged 55 and older can defer property taxes.Property Tax Deferment Program for Families with Children: qualifying home owners who financially support children under age 18 can defer property taxes.
6. BC Home Owner Grant
This grant reduces property taxes for most home owners.