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 $3,000,000 residential property in Metro Vancouver, a specified area. What is the total of the general Property Transfer Tax and the additional (foreign buyers) tax?
Correct Answer
C) $668,000
General PTT: 1% of $200,000 = $2,000; 2% of $1,800,000 = $36,000; 3% of the $1,000,000 above $2,000,000 = $30,000, for $68,000 (the further 2% applies only to residential value above $3,000,000, so it does not apply here). Additional tax: 20% of $3,000,000 = $600,000. Total: $68,000 + $600,000 = $668,000.
Why This Is the Correct Answer
This answer is correct. General tax: $2,000 + $36,000 + $30,000 = $68,000. Additional tax: 20% of $3,000,000 = $600,000. Total: $668,000.
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An eligible first-time home buyer in BC buys a resale home with a fair market value of $510,000. How much Property Transfer Tax do they pay?
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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 $900,000 residential property in Metro Vancouver. What is the TOTAL Property Transfer Tax payable, including the additional foreign buyers tax?