When calculating the Property Transfer Tax on a $2,500,000 residential purchase in BC, what is the total PTT payable (excluding any additional foreign buyer tax)?
Correct Answer
D) $53,000
PTT calculation: 1% on the first $200,000 = $2,000; 2% on the next $1,800,000 ($200,001 to $2,000,000) = $36,000; 3% on the remaining $500,000 ($2,000,001 to $2,500,000) = $15,000. Total = $2,000 + $36,000 + $15,000 = $53,000.
Why This Is the Correct Answer
Option D ($53,000) is correct. PTT calculation: 1% x $200,000 = $2,000; 2% x $1,800,000 ($200,001 to $2,000,000) = $36,000; 3% x $500,000 ($2,000,001 to $2,500,000) = $15,000. Total = $2,000 + $36,000 + $15,000 = $53,000.
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