Tax Treatment of Testamentary Trusts

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NEW TAX REBATES:

FIRST TIME NEW HOMEBUYERS’ BONUS

New first time homebuyers got some GREAT NEWS when the British Columbia Provincial Budget for 2012 was announced in February.

Not only was the HST Rebate Threshold for new home purchases increased from $525,000.00 to $850,000.00, increasing the maximum rebate to $42,500.00, the BC Government also announced the introduction of a new First-Time New Home Buyers’ Bonus.

For eligible buyers, the new Bonus is a one-time refundable personal income tax credit equal to 5% of the purchase price up to $10,000.00.  In order to be eligible for the Bonus, the buyer(s) need to meet several requirements including:

  • The contract of purchase and sale must be entered into after February 21, 2012;
  • The buyer(s) must have never previously owned a primary residence anywhere in the world;
  • The new home must be the buyer(s)’ primary residence following the purchase;
  • The buyer(s) must have filed a BC resident income tax return for the eligible tax year;
  • The buyer(s) must take possession and/or ownership of the new home before April 1, 2013;
  • The home must be located in BC.

To find out whether you qualify for the Bonus, you can contact the Income taxation Branch Ministry of Finance of British Columbia at 1(877) 387-3332, visit their website at www.fin.gov.bc.ca, or review the BC government’s fact sheet at the link below:

http://www.bcbudget.gov.bc.ca/2012/homebuyers/2012_First_Time_Home_Buyers_Fact_Sheet.pdf

We’d be happy to help you get the best out of your new home buying experience.  Call us anytime for more information or help with your next home purchase.

Photo courtesy of Diana Parkhouse

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