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First-Time Home Buyers’ Bonus Expires at the end of March!

If you are currently in the market for a new home and qualify as a first-time new home buyer, you may be eligible to receive a significant bonus of up to $10,000from the BC government. The First-Time Home Buyers’ Bonus is a non-taxable one-time payment to the purchaser and this expires at the end of March!

For all of the details on the First Time Home Buyers Bonus read below.

The B.C. First-Time New Home Buyers’ Bonus is a one-time payment worth up to $10,000.

B.C. residents who are first-time home buyers and who purchase an eligible new home on or after February 21, 2012 and before April 1, 2013 may be eligible for this bonus.

A first-time home buyer is an individual who has never previously owned a primary residence anywhere in the world.

A primary residence is generally a house that you own, jointly or otherwise, and that you intend to live in on a permanent basis. You may have more than one place of residence, but you are considered to have only one primary residence.

Qualifications:

  • You may qualify for the bonus if you meet all of the following criteria:
  • You purchase or build an eligible new home in B.C.
  • You and your spouse or common-law law partner are first-time home buyers
  • In the case of multiple buyers of a home, each buyer is a first-time home buyer
  • 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 tax return (you are not 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
  • You intend to live in the home as your primary residence
  • No one else has claimed a bonus for the home

Eligible New Homes

Eligible new homes include:

  • new homes (i.e. newly constructed and substantially renovated homes) that are purchased from a builder
  • owner-built homes
  • A substantially renovated home is one where all, or substantially all, of the interior of the building has been removed or replaced. Generally, 90% or more of the interior must be renovated to qualify.
  • Eligible 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.
  • Newly constructed and substantially renovated homes

The bonus is available for newly constructed and substantially renovated homes in B.C. purchased from a builder, where:

  • a written agreement of purchase and sale is entered into on or after February 21, 2012 and before April 1, 2013,
  • HST is payable on the purchase, and
  • ownership or possession of the home is transferred before April 1, 2013.
  • Owner-built homes

The bonus is available for new owner-built homes, where:

  • a written agreement of purchase and sale for the land is entered into on or after February 21, 2012, and
  • construction of the home is substantially complete, or the home is occupied, before April 1, 2013.

Bonus Calculation:

  • 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. The maximum bonus is $10,000.
  • The bonus is 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¢ for every dollar in net income over $150,000. The bonus is reduced to zero at $200,000 income.
  • For couples, the bonus is reduced by 10¢ for every dollar in family net income over $150,000. The bonus is reduced to zero at $250,000 family net income.

Claiming the Bonus

  • If you claimed the B.C. HST New Housing Rebate, you can apply for the bonus by completing the Application for the B.C. First-Time New Home Buyers’ Bonus (FIN 520) (PDF).
  • For assistance, read How to Complete the Application for the B.C. First-Time New Home Buyers’ Bonus (FIN 520)
  • If you are married or have a common-law spouse, your spouse must complete the Schedule A – Certificate B.C. First-Time New Home Buyers’ Bonus (FIN 520A) (PDF). In the case of multiple buyers of a new home, the other co-owners must also complete the Schedule A.
  • Please note: The person who claimed the B.C. HST New Housing Rebate is the person who must complete the Application for the B.C. First-Time New Home Buyers’ Bonus.

If you are considering new construction give us a call today!

Warm Regards,

Morgan DuVernet & Kelsie Struch

Century 21 In Town Realty

604-209-1230