A first-time home buyer in BC, a Canadian citizen, buys a newly built home for $740,000 to live in as a principal residence. Which statement about Property Transfer Tax exemptions is correct?
Correct Answer
C) The newly built home exemption can fully exempt it if conditions are met
The newly built home exemption fully exempts an eligible buyer when the fair market value is $1,100,000 or less (Property Transfer Tax Act ss. 12.01-12.02). The first-time buyers' exemption would only exempt tax on the first $500,000, so at $740,000 the newly built exemption is the one that can remove the whole tax.
Why This Is the Correct Answer
At $740,000 the home is below the $1,100,000 qualifying value for the newly built home exemption, so an eligible citizen buying it as a principal residence can be exempt from all of the general Property Transfer Tax.
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