Re: Property Transfer Tax Changes
Good morning everyone. By now you should have heard about the changes in the latest budget regarding the PTT. Here is what we know.
1. There are no changes to the first time home buyer exemption limits;
2. All buyers (whether first time buyers or not) no longer pay PTT on purchases of NEW homes up to $750,000 in value; note the buyer must be a Canadian citizen or a permanent resident; there is a partial exemption for homes between $750,000.00 and $800,000.00;
3. PTT has changed so that there is now a 3% tax on amounts over $2,000,000.00. The 3% tax is only paid on the amount over $2,000,000.00, not the full price.
These are effective for deals closing today and going forward. We had one client close on a new home yesterday, and we believe they are out of luck. We also had one client that was to close today on a $4,000,000.00 purchase, but we moved the completion to yesterday to save the client $20,000.00 in PTT.
Let me know if any questions, but I will likely amalgamate the questions and send them out later in the week along with the answers. I likely will not have the time to answer each question as they come in. Sorry, hope you understand.
We will soon update the calculators on our website, but for now they are out of date.
As usual, thanks for the support.
Tony Spagnuolo, Barrister & Solicitor
Spagnuolo & Company Lawyers
#300-906 Roderick Avenue
Coquitlam, BC V3K 1R1
Direct Phone: 604-777-7406
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