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?
Correct Answer
A) $196,000
General PTT: 1% of $200,000 = $2,000, plus 2% of the $700,000 above $200,000 = $14,000, for $16,000. Metro Vancouver is a specified area, so the additional tax is 20% of $900,000 = $180,000. Total: $16,000 + $180,000 = $196,000.
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Previous Question
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?
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