An eligible first-time home buyer in BC buys a $450,000 resale condominium. How much Property Transfer Tax will they pay?
Correct Answer
D) $0
The first-time buyers' exemption covers the tax on the lesser of the fair market value and $500,000. At $450,000 the whole value is covered, so an eligible buyer pays no Property Transfer Tax, instead of the $7,000 that would otherwise be due.
Why This Is the Correct Answer
The exempt amount is the lesser of $450,000 and $500,000, which is the whole value, so no tax is payable.
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- → In Ontario, what is the standard Land Transfer Tax rate for a residential property purchase of $400,000?
- → Which of the following best describes when land transfer tax is typically paid?
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