The government of BC recently announced its intention to implement a home buyer bonus of a one-time refundable personal income tax credit worth up to $10,000. This bonus is an incentive to offset the HST costs of buying a new home. Below are some details of this bonus.
- Purchasers have to enter into a written agreement to purchase a property after Feb 21, 2012
- The purchase must complete by March 31, 2013.
- There must be HST payable on the home.
- The bonus is only valid if no one else has claimed the bonus on the home.
- The bonus is also in effect for owner built homes as well.
- If you substantially renovate your home (90% or more) then you may also qualify for the bonus.
The bonus is equal to 5% of the cost of the home up to a maximum of $10,000. The bonus is also reduced for high income earners. Applications have to go through the government of BC to apply for the bonus.
For further information on this tax credit we suggest you contact your accountant or the Ministry of Finance for the Province of BC at 1-877-387-3332.