A foreign national who falls within an exception to the federal ban on home purchases by non-Canadians and qualifies for no BC exemption from the additional tax buys a $3,500,000 residential property in the Capital Regional District. What is the total of the general Property Transfer Tax and the additional (foreign buyers) tax?
Correct Answer
D) $793,000
General PTT: 1% of $200,000 = $2,000; 2% of $1,800,000 = $36,000; 3% of the $1,500,000 above $2,000,000 = $45,000; plus the further 2% on the $500,000 of residential value above $3,000,000 = $10,000, for $93,000. The Capital Regional District is a specified area, so the additional tax is 20% of $3,500,000 = $700,000. Total: $93,000 + $700,000 = $793,000.
Why This Is the Correct Answer
This answer is correct. General PTT is $2,000 + $36,000 + $45,000 = $83,000, plus 2% of the $500,000 above $3,000,000 ($10,000), for $93,000. The additional tax is 20% of $3,500,000 = $700,000. The total is $793,000.
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