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.
- 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.
- 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!
Morgan DuVernet & Kelsie Struch
Century 21 In Town Realty