Up to what fair market value does an eligible first-time home buyer in BC pay no general Property Transfer Tax at all?
Correct Answer
B) $500,000
The first-time buyers' exemption applies to the tax on the lesser of the fair market value and $500,000 (Property Transfer Tax Act s. 5(1.01)). So a home worth $500,000 or less is completely exempt; above that, the buyer pays 2% on the value over $500,000 for homes up to $835,000.
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