It has been a couple weeks since the BC Budget was tabled, and while not all details are known, there is a bit more clarity. This email will answer our most frequently asked questions. More information (and answers to other less frequently asked questions) can be found an our website at BC Budget 2024 Updates: PTT Exemptions and Flipping Tax – B.C. Real Estate Lawyers (bcrealestatelawyers.com)
PTT Exemptions: Based on Completion Date or Contract Date? The Completion Date appears to be the only thing that matters. There does not appear to be any exclusion of contracts entered into prior to April 1, 2024 or any other conditions related to the date of the contract. It appears that a property will qualify for the First Time Home Buyers or Newly Built Home Buyers exemption so long as the fair market value of the property does not exceed $835,000 or $1,100,000 effective April 1, 2024.
Flipping Tax: Pre-Sale Contracts. Based on current guidance, a pre-sale purchaser is deemed to acquire the pre-sale as of the date of the pre-sale contract. Accordingly, if a person enters into a pre-sale contract, completes the purchase and sells within two years of the original pre-sale contract, they will be subject to the BC Flipping Tax. The two year window does not get extended by the actual close of the unit at the Land Title Office. More details on this will emerge when legislation is introduced. They would also be hit if they assigned the pre-sale contract within two years of signing the pre-sale.
Many of you use our PTT calculator but these are only accurate for closings prior to April 1, 2024. THEY ARE NOT ACCURATE FOR DEALS CLOSING ON OR AFTER APRIL 1, 2024. We should have these updated by the end of this week and will keep you posted. If you have a closing early April and would like assistance with the PTT calculation we would be happy to assist our clients, so give us a call or email.
We will continue to keep you posted on these and other legal issues as they arise. As always, thanks for the support.