Subject to approval by the legislature, the B.C. government intends to implement a temporary BC First-Time New Home Buyers’ Bonus. Effective February 21, 2012, to March 31, 2013, the bonus is a one-time refundable personal income tax credit worth up to $10,000.
You will qualify as a first-time new home buyer if
You purchase or build an eligible new home located in B.C.
You, or for couples, you and your spouse or common law partner, have never previously owned a primary residence. You file a 2011 B.C. resident personal income tax return, or if you move to B.C. after December 31, 2011, you file a 2012 B.C. resident personal income tax return (you will not be eligible for the bonus if you move to B.C. after December 31, 2012). You are eligible for the B.C. HST New Housing Rebate; and
You intend to live in the home as your primary residence.
An eligible new home includes new homes (i.e., newly constructed and substantially renovated homes) that are purchased from a builder and that are owner-built. The bonus will be available in respect of new homes purchased from a builder where:
A written agreement of purchase and sale is entered into on or after February 21, 2012; HST is payable on the home (e.g., HST will generally be payable if ownership or possession if the home transfers before April 1, 2013, see further details below); and no one else has claimed a bonus in respect of the home.
The bonus will be available in respect of owner-built homes where:
A written agreement of purchase and sale in respect of the land and building is entered into on or after February 21, 2012;
Construction of the home is complete, or the home is occupied, before April 1, 2013; and No one else has claimed a bonus in respect of the home. 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 interior of the house must be renovated to qualify as a substantially renovated home (90% test).
The bonus is equal to 5% of the purchase price of the home (or in the case of owner-built homes, 5% of the land and construction costs subject to HST) to a maximum of $10,000.
The bonus will be reduced based on an individual’s/couple’s net income (line 236 of your income tax return) using the following formula:
»» For single individuals, the bonus is reduced by 20 cents for every dollar in net income over $150,000 (bonus is reduced to zero at $200,000 net income). »» For couples, the bonus is reduced by
10 cents for every dollar in family net income over $150,000 (bonus is reduced to zero at $250,000 family net income)
Individuals must apply for the bonus through the B.C. government. Individuals can apply once application forms have been posted on the B.C. Ministry of Finance website later this year. Applicants will be required to submit documentation demonstrating eligibility for the bonus.
The bonus is available in respect of new homes (i.e., newly constructed and substantially renovated homes) where HST is payable. HST will generally be payable on homes purchased from a builder where ownership or possession transfer before April 1, 2013. Potential buyers should consult with the builder to determine if the home will be subject to the HST. For owner-built homes, the bonus will be based on land and construction costs subject to the HST.
Eligible new homes will include:
Duplexes and townhouses
Residential condominium units
Mobile homes and floating homes
Residential units in a cooperative housing corporation.
For More Information
INCOME TAXATION BRANCH
Ministry of Finance
Province of British Columbia
Telephone: (250) 387-3332 or 1 (877) 387-3332
Federal Finance Minister Jim Flaherty has delivered a new budget in the House of Commons aimed at cutting the deficit by 2015. Canada had a surplus in 1997 until 2007. Brian Mulroney in 9 years never ran a balanced budget 1984-1992. Jean Cretien had 7 years of surplus out of 11.
Raise the age of eligibility for Old Age Security from 65 to 67 beginning in 2023.
Eliminate the penny. (an $11 million per year saving).
Allow Canadians to claim more goods duty-free at the border. The limit after 24 hours goes from $50 to $200.
Raise the retirement age of public servants from 60 to 65, for new employees beginning in 2013.
Make the Governor General pay income tax beginning in 2013, they gave him a raise to cover it however.
(I wonder who else doesn't pay that we don't know about).
Sell official residences abroad, generating $80 million in revenue. These would be nice listings to get!
$205 million over one year for Hiring Credit for Small Business.
Give $101 million over next five years for Esquimalt Graving Dock.
Down payment minimum stays at 5% and mortgage amortization remains capped at 30 years.
The budget has no new taxes or tax increases (I especially liked this one)
$500 million to stimulate growth of innovative start-up companies.
I post both my cell and office number so my clients can reach me anytime. I am always happy to discuss your real estate needs.
Office 1-5140 Metral Dr. Nanaimo