In BC, a first-time home buyer purchases a $450,000 condominium. What Property Transfer Tax will they pay?
Correct Answer
C) $7,000
The first-time home buyer exemption in BC applies only to properties up to $500,000, but the exemption is reduced dollar-for-dollar for amounts over $500,000. For a $450,000 purchase, the buyer pays: 1% on first $200,000 ($2,000) + 2% on remaining $250,000 ($5,000) = $7,000.
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