Saturday, February 25, 2012
B.C. First Time New Home Buyers Bonus
February 22, 2012
In its 2012 Budget announced yesterday, the Provincial Government announced a temporary one-time refundable personal income tax credit worth up to $10,000. Details are on the information sheet below obtained from the Government Website. No doubt the accountants will be busier...
THE B.C. FIRST-TIME NEW HOME BUYERS' BONUS
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. Requirements to Qualify for the Bonus
ELIGIBLE FIRST-TIME NEW HOME BUYER
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.
ELIGIBLE NEW HOME
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 of 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.
Amount of the Bonus
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.; PHASE-OUT FOR HIGHER INCOME
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).
THE B.C. FIRST-TIME NEW HOME BUYERS' BONUS
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.
ELIGIBLE NEW HOME
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: Detached Houses, semi-detached houses, duplexes and townhouses,Residential condominium units,Mobile homes and floating homes, and ;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
Friday, February 24, 2012
Tourism Vancouver’s new destination film is blazing a trail around the globe via social media. Just one week after its official release, “It’s You…Vancouver” has received more than 100,000 views in 87 countries worldwide.
Incorporating a local band and original song, Tourism Vancouver’s three-minute production is among the world’s first professionally produced destination films in music video format.
The song is performed by Watasun, a local duo whose music fuses urban beats with traditional folk sounds. The word ‘Watasun’ simply means ‘Life’.
Throughout the video, the band perform their catchy tune while making appearances in, near or atop iconic Vancouver attractions, including snow-covered Grouse Mountain, an Aquabus ferry and the newly renovated BC Place stadium.
In collaboration with Watasun, along with partners Silent Joe West and Barbershop Films, Tourism Vancouver released the video last week through various social media channels, including the organization’s Inside Vancouver blog, Twitter accounts, Facebook page and YouTube.
In addition, Tourism Vancouver members and industry partners were encouraged to help extend the video’s reach by using it in their own marketing initiatives.
“We’re thrilled at the interest our destination film has received both locally and internationally,” said Walt Judas, vice president of Marketing Communications and Member Services at Tourism Vancouver.
“Locals love it, and we’ve had views from as far away as Kenya, Thailand and Jamaica. It’s extremely validating that taking an unconventional approach has paid off and called worldwide attention to Vancouver.”
“We shot the video for ‘It’s You… Vancouver’ over the course of six days, playing the song at least a couple hundred times,” said Watasun’s Reid Hendry.
“It was the first time Adam and I had made a video of such magnitude. Luckily, we had an amazing crew from Barbershop Films and beautiful scenery to keep us motivated. The whole experience reminded us that we can enjoy Vancouver’s natural beauty throughout the year, all around the city – anyone can.”
Monday, February 20, 2012
Government announces new HST/PST housing transitional rules
The government today announced the HST/PST transitional rules on new homes.
As the province transitions back to the PST, which will replace the HST effective April 1, 2013, measures to ease the HST burden on new home buyers include:
The BC New Housing Rebate threshold will increase to $850,000 from $525,000, so that more than 90% of newly built homes will now be eligible for a provincial HST rebate effective April 1, 2012.
The maximum rebate will increase to $42,500 from $26,250 effective April 1, 2012.
Buyers of new secondary vacation or recreational homes outside the Greater Vancouver and Capital Regional Districts priced up to $850,000 will now be eligible to claim a provincial grant of up to $42,500 effective April 1, 2012.
For newly built homes where construction begins before April 1, 2013, but ownership and possession occur after, purchasers will not pay the 7% provincial portion of the HST. Instead, purchasers will pay a temporary, transitional provincial tax of 2% on the full house price.
HST/PST transition rules will help ensure that whenever purchasers buy a new home they will all pay a consistent and equitable amount of tax, whether the home is built:
entirely under the HST;
entirely under the PST; or
partly under HST and partly under the PST.
The temporary housing transition measures will be in place until March 31, 2015. The tax only applies to homes where construction begins before the transition date and ownership and possession occur after.
Friday, February 10, 2012
January 2012 Housing Market Update
The Real Estate industry is a key economic driver in British Columbia. In 2008, 24,626 homes changed hands in the Board's area generating $1.03 billion in spin-offs. The Real Estate Board of Greater Vancouver is an association representing more than 9,400 REALTORS®. The Real Estate Board provides a variety of membership services, including the Multiple Listing Service®.
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