January 21, 2020

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.

Learn more. 1-888-355-2700.

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).

Learn more. 1-800-959-8281.

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.

Learn more. 1-888-355-2700.

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.

Canada Revenue Agency. 1-800-959-8287.

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.

Learn more. Vancouver: 604-660-2421. Elsewhere in BC:1-800-663-7867.

6. BC Home Owner Grant

This grant reduces property taxes for most home owners.

Learn more.

More cost-saving programs

31 ways home buyers, sellers, and owners can save money


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