Have some confusion on how the 1st time buyer tax exemption works?  Here is the program outline by the province.  Feel free to email me if you have any further questions about this program or Buying and Selling real estate. dsilletta@remax.net

First Time Home Buyers' Program

The First Time Home Buyers' Program reduces or eliminates the amount of property transfer tax you pay when you purchase your first home. If you qualify for the program, you may be eligible for either a full or partial exemption from the tax.

If one or more of the purchasers don’t qualify, only the percentage of interest that the first time home buyer(s) have in the property is eligible.

For example, if you qualify and purchase a property with a fair market value of $400,000 with a person that doesn’t qualify you would still qualify. If you owned a 60% interest in the property, 60% of the tax amount would be eligible for the exemption.

Do I Qualify?

To qualify for a full exemption, at the time the property is registered you must:

• be a Canadian citizen or permanent resident
• have lived in B.C. for 12 consecutive months immediately before the date you register the property or filed at least 2 income tax returns as a B.C. resident in the last 6 years
• have never owned an interest in a principal residence anywhere in the world at any time 
• have never received a first time home buyers' exemption or refund

and the property must:

• be located in B.C.
• only be used as your principal residence
• have a fair market value of:
  • $425,000 or less if registered on or before February 18, 2014, or
  • $475,000 or less if registered on or after February 19, 2014
• be 0.5 hectares (1.24 acres) or smaller

You may qualify for a partial exemption from the tax if the property:

• has a fair market value less than:
  • $450,000 if registered on or before February 18, 2014, or
  • $500,000 if registered on or after February 19, 2014
• is larger than 0.5 hectares
• has another building on the property other than the principal residence

Find out the amount of your exemption if you qualify.

If you don’t qualify because you are not a Canadian citizen or permanent resident, but you become one within 12 months of when the property is registered, you may apply for a refund of the tax. To apply for a refund call (250) 387-0604.

100% Eligible

Below is the amount of tax payable if 100% of the property transfer is eligible for the First Time Home Buyer's Exemption.

50% Eligible 

If only part of the property transfer is eligible (e.g. not all of the purchasers qualify), the exemption amount will be reduced. The amount of the exemption is reduced by the percentage of the property transfer that isn't eligible.

Below is the amount of tax payable if 50% of the property transfer is eligible for the First Time Home Buyer's Exemption.