Effective February 21, 2012, the Province of British Columbia is offering a new first time new home buyers bonus of up to $10,000 in refundable personal income tax credit.
But there is a deadline. The bonus will only be available until March 31, 2013.
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.
But first, eligbility - 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.
Second, keep in mind that this is different than other available first time home buyers tax exemptions and grants in that it is solely for first time home buyers that are purchasing a new home (as opposed to resale).
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 of the home transfers before April 1, 2013 and
»» No one else has claimed a bonus in respect of the home
Keep in mind that new homes built by an owner still qualify (ask for details). Also, if your household net income is over $150,000, your maximum rebate decreases and is eventually phased down to $0 if you make over $250,000.
If you want to receive more details on this or other first time home buyer incentives, fill out the form below and one of our knowledgeable team members will respond in a timely fashion.