A couple buys a resale home in British Columbia for $800,000. They do not qualify for the first time home buyers' or new housing exemption. What Property Transfer Tax must they pay?
Correct Answer
C) $15,000
Property Transfer Tax is 1% of the first $200,000 ($2,000) plus 2% of the portion from $200,000 to $2,000,000, here $600,000 x 2% = $12,000. The total is $2,000 + $12,000 = $15,000.
Why This Is the Correct Answer
This answer is correct. $2,000 on the first $200,000 plus $12,000 on the next $600,000 gives $15,000.
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A couple purchased their principal residence for $400,000 in 2020 and sold it for $550,000 in 2024. What is their taxable capital gain?
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A developer purchases a property for $2,000,000 in Alberta, subdivides it, and sells individual lots. The total sales revenue is $3,500,000, with development costs of $800,000. How will this transaction likely be taxed?