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No -Property Transfer Tax – On Newly Built Homes UP To $750,000
On February 16th, the BC Government announced the 2016 Budget for the province, which introduced several changes to the Property Transfer Tax Act.
These changes affect any real estate transaction that is completing February 17th onwards, regardless of the date the contract of purchase and sale was executed.
1. Changes to the BC Property Transfer Tax Rate
One of the changes to the Property Transfer Tax Act is a new tax rate of 3% for properties with a fair market value greater than $2,000,000. The Property Transfer Tax (PTT) is now calculated as follows:
1. 1% of the taxable transaction’s fair market value that does not exceed $200,000.
2. 2% of that fair market value that exceeds $200,000 but does not exceed $2,000,000.
3. 3% of that fair market value that exceeds $2,000,000.
2. Property Transfer Tax – Newly Built Home Exemption
Another change to the BC Property Transfer Tax Act is the addition of a new exemption – the Newly Built Home Exemption. Below are some key points to consider:
1. The exemption applies only to newly built homes.
2. There is a full exemption for qualifying properties with a fair market value of $750,000 or less and a partial exemption for qualifying properties with a fair market value between $750,000 ... more
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