Hey, first time new home buyer. How does a personal income tax credit of $10,000 sound? Whether you’re looking for a bit of relief after the monumental task of purchasing your first home or you just want to buy a sweet new pool table for the den, you just might be in luck. The B.C. government is offering first-time new home buyers a temporary bonus from February 21, 2012 to March 31, 2013. Buy a home within this time window and you have the possibility of getting a one-time refundable personal income tax credit of up to $10,000. Think of how much pool cue chalk that can buy.
There’s never been a better time to buy a new home in B.C., and the Temporary B.C. First-Time New Home Buyers’ Bonus is just one more reason to. The bonus is effective February 21, 2012 to March 31, 2013, so if you haven’t bought a home in B.C .yet, you’ve still got time to get in on this great deal. While you’re busy getting your ducks in a row financially and domestically (e.g. “Which banana holder will look good with this island?”), this tax credit will give you some much-needed peace of mind.
In order to qualify for this amazing bonus, you’ll have to meet a few basic requirements. For one, this must be your first home purchase. You must also file a 2011 B.C. resident personal income tax return (or a 2012 B.C. resident personal income tax return if you move to B.C. after December 31, 2012.) You must be also eligible for the B.C. New Housing Rebate. Last but not least, you must intend on living in the home as your primary residence (so no hanging out in Costa Rica all year.)
Your home must be newly built or substantially renovated. Eligible new homes include the following: detached houses, semi-detached houses, duplexes/townhouses, residential condominium units, mobile homes/floating homes, residential units in a cooperative housing corporation.
The Temporary B.C. First-Time New Home Buyers’ Bonus is based not only on the purchase price of the home (5 percent of the purchase price up to $10,000), but on your income. For single homebuyers, the credit is reduced by 20 cents for every dollar in net income over $150,000 and is reduced to zero at $200,000. For couples, the bonus is reduced 10 cents for every dollar in net income over $15000 and is reduced to zero at $250,000.
Once the BC government has posted its application forms on its website, you’ll have the ability to apply for this fantastic tax credit with the proper documentation. For more information, contact the Income Taxation Branch of the Ministry of Finance.
In today’s uncertain economy, a great offer like the Temporary B.C. First-Time New Home Buyers’ Bonus can make a huge difference. So if you want to save up to $10,000, take advantage of this incredible tax credit before it’s too late. If you’re going crazy trying to program the new coffee maker, this amazing offer will ease some of your stress. Apply for the Temporary B.C. First-Time New Home Buyers’ Bonus!