BC First-Time New Home Buyers’ $10,000.00 Bonus Tax Free
The BC First-Time New Home Buyers’ Bonus is a one-time bonus payment worth up to $10,000 for first-time new home buyers in BC. The legislation for the BC First-Time New Home Buyers’ Bonus is expected in spring 2012.
“ Finally BC first time buyers would have the opportunity to have their dream release by owning their dream home instead of renting it” says Navtaj Chandhoke, founder of Professional Real Estate Investors Group (PREIG) Canada” it can be difficult for lot of Canadian families to save the down payment. This program will assist lot of families in the BC”.
BC First-Time New Home Buyers’ Bonus are required to have following qualifications
- Eligible claimants must be first-time homebuyers – an individual who has never previously owned a primary residence anywhere in the world;
- For couples, neither the individual nor the spouse or common law partner can have previously owned a primary residence anywhere in the world;
- The claimant must file a BC resident personal income tax return for 2011 or if the claimant moves to BC after December 31, 2011, must file a 2012 BC resident personal income tax return;
- Individuals or families who move to BC after December 31, 2012 will not be eligible.
Newly Constructed Homes and Substantially Renovated Homes
- The bonus is available in respect of new homes located in BC (i.e. newly constructed homes purchased from a builder and substantially renovated homes), on which HST is payable;
- A substantially renovated home is one where all or substantially all of the interior of a building has been removed or replaced, generally 90% or more of the home must be renovated to qualify;
- The written agreement of purchase and sale for the home must be entered into on or after February 21, 2012 and before April 1, 2013;
- Ownership or possession of the home must transfer before April 1, 2013;
- Eligible new homes include detached houses, semi-detached houses, duplexes, and townhouses, residential condominium units, mobile homes and floating homes and residential units in a cooperative housing corporation.
The BC First-Time New Home Buyers’ Bonus is available in respect of owner-built homes:
- Where the written agreement of purchase and sale for the land is entered into on or after February 21, 2012 and before April 1, 2013;
- The bonus will be based on land and construction costs subject to HST;
- Construction of the home must be complete, or the home must be occupied, before April 1, 2013.
Other Criteria for BC First-Time New Home Buyers’ Bonus
- The claimant must be eligible for the BC HST New Housing Rebate in order to receive the bonus;
- The claimant must intend to live in the house as a primary residence;
- No one else has claimed the bonus in respect of the home.
Bonus Calculation for BC First-Time New Home Buyers’ Bonus
- The bonus is calculated as 5% of the purchase price (not including HST) of the home up to a maximum of $10,000;
- The bonus is income tested. For single individuals, the bonus will be phased out at a rate of 20 per cent of net income in excess of $150,000 and eliminated at incomes greater than $200,000. For couples, the bonus will be phased out at a rate of 10 per cent of family net income in excess of $150,000, and eliminated at family incomes greater than $250,000.
You must apply to the BC Ministry of Finance to receive the bonus. The ministry will process applications, determine eligibility, and issue the bonus payments. The bonus is not claimed when filing an income tax return.
Once available, the application form will be posted at
http://www.sbr.gov.bc.ca/individuals/income_taxes/personal_income_tax/tax_credits/fthb_bonus_about.htm
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