Buy A New Home During PST/HST Transitional Period?

Transitional Period is from April 1, 2012 to April 13, 2013.


If you buy a NEW house during transitional period:


1/  you will have to pay a transitional BC provincial tax of 2% on house price.


2/  you will still like before have to pay GST (5% on house price) to the federal government.

Principal Home Buyers still get federal rebate: 

**36% rebate x 5% GST x hse price $350,000 = maximum rebate $6,300

**from $350,000 to $450,000, maximum rebate $6,300 will be phased out on a straight basis; at $450,000, federal rebate=0

PST/HST Transitional Rules start Apr 1, 2012. Formula?

In BC, PST will replace HST on Apr 1, 2013.

The transitionl rules start Apr 1, 2012, one year earlier.

The Provincial Enhanced New Housing Rebate Formula will give Principal Residence Buyers more rebate back if House Price is higher than $525,000:

Old Rebate Formula   = 5% (rebate) x Hse Price (up to $525,000) =$26,250 (Max)

Transitional Rebate Formula=5% (rebate) x Hse Price (up to $850,000) =$42,500 (higher Max)

Not Living There All The Time U Owned Your Principal Residence?

Do you have to report sale of your principal residence if you don't live there the whole time you owned it?

1/  Yes, you have to report sale on your tax return.

2/  You have to calculate the PRE (Principal Residence Exemption) and taxable capital gain.

3/  PRE = (# of years used as Principal Residence + 1)   x    Total Capital Gain
              Total # of yr You Owned Your Principal Residence

The extra 1 year in the equation means the year of moving, which will be counted as principal residence.

4/  Taxable Capital Gain = Total Capital Gain  minus  PRE

Only 1.5 Acres Considered Principal Residence?

Is your Home with Lot over 1.25 Acres considered Principal Residence?

1/  Only 1.25 Acres will be considered Principal Residence.

2/  When you sell, land in excess of 1.25 Acres will be considered Capital Gain or Loss.

3/  If the property is not subdividable, the whole land may be considered Principal Residence.

You And Spouse Can Own 2 Principal Homes?

Can You And Your Spouse designate 2 Principal Residences?

After 1981: You and your spouse may only designate ONE Principal Residence both together.

Before 1982: You and your spouse can designate TWO Principal Residences, one for yourself and 1 for your spouse.

Partly Principal Home, Partly Rental, Pay Capital Gain Tax?

Do you need to pay Capital Gain Tax on sale of a Partly Principal Residence with a Rental Suite (eg, a duplex)?

1/  When you sell, you need to split the Capital Gain or Loss between Principal Residence and Rental Suite.

2/  You can do the splitting by using square feet or number of rooms.

3/  Just need to report the Rental Part.

4/  No need to report the Principal Home Part.

5/  For the Rental Part, pay Capital Gain Tax if you gain; claim loss if you lose.

Principal Home: Pay Tax On Capital Gain?

Do you need to pay tax on Sale of Principal Residence?

1/ No need to pay tax on any gain.

2/ No need to report on your income tax return.

3/ You cannot claim any loss if you lose on selling principal home because your home is considered personal-use property.

What Is A Principal Residence?

A Principal Residence must be :

1/ a house,  cottage, condo,  trailer, mobile home  or houseboat.

2/ freehold, leasehold or co-op housing.

3/  owned by you solely or jointly.

4/ lived in some time during the year by you, your current or former spouse, or your children.

5/ that you designate the property as your principal residence.

6/ 1.24 acres or less in size.

Contamination: Why Remove Underground Oil Tank?

Reasons why Underground Oil Tank must be removed:
1/  Law requires that Oil Tank after being out of service for two years must be removed .


2/  Oil may leak from oil tank and contaminate the soil.


3/  Oil may migrate to neighbouring properties and cause liabilities and costs.


4/ To remove contaminated soil and its remediation are very expensive.


5/  A tank, if known to exist, must be removed before the property can be sold.

Contamination: Got Underground Storage Tank?

How can you know that you have Underground Storage Tank on your property?

1/  Call 311 to check if there is any record.

2/ Check visual signs: any remaining filler pipe from ground, supply lines, vent pipes and fuel oil marks.

3/  Hire a contractor to search.

A property owner is responsible for removing any underground storage tank on the property.

Strata: Exemptions To Rental Restriction Bylaw?

A Rental Restriction Bylaw cannot stop a condo owner from renting his unit:
(I)   to his Family Members
(II)  if it causes Hardship to the owner.

Family members mean:
1/  Spouse of Owner.
2/  Parent or Child of Owner.
3/  Parent or Child of Spouse.

Strata: Rental Restriction Passed. Effective Now?

Where a New Rental Restriction Bylaw is just passed, its application will be effective at least 1 year later.

For condo without tenant (i.e. owner-occupied unit), the bylaw will apply 1 year later.

For condo with a current tenant, the bylaw will apply 1 year AFTER THE TENANT HAS MOVED OUT.

Rental: 6 Ways To Serve Notice To Landlord?

Tenant can serve written notice to landlord by the following ways:
1/  Serve notice in person.

2/  Serve notice to landlord's agent.

3/  Serve notice to an adult living with landlord.

4/  Post notice to front door of landlord's home or office. Landlord is presumed to have received after 3 days, not counting the day of serving.

5/  Mail the notice, which is deemed to be served 5 days after mailing.

6/  Mail by registered mail.

Rental: One Calendar Month Notice To Move Out?

For Month-To-Month Tenancy:
To move out, tenant must provide written notice to landlord one calendar month before the planned date of moving out (normally the last day of a month).

For Fixed Term Tenancy not stating that tenant must move out at the end of the fixed term:
Tenant can give one calendar month written notice to the landlord to move out before the end of tenancy.

If moving out before end of a fixed term tenancy, tenant has to continue to pay rent until end of the term.

If tenancy is for a fixed term of 6 months or more:
*Tenant can ask for landlord consent to assign or sublet the rental unit.
*Landlord cannot unreasonably withhold consent to assign or sublet.