First-Time New Home Buyers' Bonus Ends Soon!

By Cameron McNeill

The B.C. First-Time New Home Buyers’ Bonus helps make owning your first home a little more affordable.  If you’re a first-time homebuyer in the market for a newly built or substantially renovated home, you can get up to $10,000 back from the B.C. government through a onetime income tax credit.

But you will have to act fast; this bonus is only applicable on eligible new home purchases on or before March 31, 2013.  The credit works out to five per cent of the home’s purchase price, up to a maximum of $10,000.  Or, to look at it another way, any newly built home worth $200,000 or more qualifies for the full amount.

The purpose of this bonus is to help families starting out, especially those with lower incomes, gain access to the real estate market.  The bonus is gradually phased out for individuals and couples who earn more than $150,000 a year.  According to the Government of British Columbia, to qualify:

YOU MUST BE AN ELIGIBLE FIRST-TIME NEW HOME BUYER
› You, or you and your spouse or common-law partner, have never previously owned a primary residence;
› You purchase or build an eligible new home located in B.C.;
› 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.

YOU MUST BE PURCHASING AN ELIGIBLE NEW HOME
An eligible new home includes new homes (i.e., newly constructed and/or substantially renovated homes) that are purchased from a builder and that are owner-built. The bonus will be available to the following new home purchases:
› By way of a written agreement of purchase and sale, 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 previous bonus on the home.

For more detailed information on this limited time program contact your accountant, lawyer or visit www2.gov.bc.ca and look up “taxes and rebates.”

Source: New Condo Guide