What is Property Transfer Tax? It is a tax register paid for changes to a certificate of title to Land Title Office in British Columbia. Simply said - if you are buying a property, you have to pay

Dated: January 16 2021
Views: 866
What is Property Transfer Tax?
It is a tax register paid for changes to a certificate of title to Land Title Office in British Columbia. Simply said - if you are buying a property, you have to pay this tax.
So it is property tax, right?
Wrong. Property tax is paid regularly by homeowner. Property transfer tax is paid once, after you purchase the property. The rates are different too.
When do I have to pay the tax?
You are obliged to pay the tax, when you:
Some examples of taxable transactions:
What happens I do not pay the tax?
Your transaction may not be registered!
What is the Fair Market Value?!
In most cases it is the purchasing price. However, in some cases there is no monetary exchange (gift, transfer to a shareholder). In such situation, fair market value is used for the tax purposes. This value is usually based on BC property assessment.
I am first-time homebuyer. Do I have to pay the tax?
No, if you are buying your first property. This property has to be your principal residence and you have to live there at least one year. Full exemption is possible only when fair value of your property do not exceed $425,000 and the land does not exceed 0.5 hectares (1.24 acres).
If the value exceeds the qualifying value ($425,000, but it may change in the future) by no more than $25,000, you are eligible for partial exemption. Now the things get complicated!
Take the result from our calculator and multiple it by [450,000-FMV]/25,000. Thats your rebate.
Example: Your FMV is $445,000, your tax is $6,900. Then [450,000-445,000]/25,000=1,380. Your first-time homebuyer tax is $6,900-$1,380=$5,520
Are there any other exemptions?
The rules are tough, but there are several exemptions at least. Most notably:
Be aware that every person can be audited. An audit will identify any transactions where tax obligation may have been done incorrectly.
Can I appeal?
Yes, you can appeal both tax assessment and consequent penalties within 90 days since the date on Notice of Assessment t. There are two tiers - appeal to the Minister of Finance and appeal to the Court or arbitration.
What is Property Transfer Tax? It is a tax register paid for changes to a certificate of title to Land Title Office in British Columbia. Simply said - if you are buying a property, you have to pay
The Market Value of a Home vs. the Assessed ValueAre you a first time home buyer? If so, you may have many questions about the process from start to finish. One of the most common