- You purchase or build an eligible new home in B.C.
- You and your spouse or common-law law partner are first-time home buyers
- In the case of multiple buyers of a home, each buyer is a first-time home buyer
- You file a 2011 B.C. resident personal income tax return or, if you move to B.C. after December 31, 2011, you file a 2012 B.C. resident personal tax return (you are not eligible for the bonus if you move to B.C. after December 31, 2012)
- You are eligible for the B.C. HST New Housing Rebate
- You intend to live in the home as your primary residence
- No one else has claimed a bonus for the home
Eligible New HomesEligible new homes include:
- new homes (i.e. newly constructed and substantially renovated homes) that are purchased from a builder
- owner-built homes
Newly constructed and substantially renovated homesThe bonus is available for newly constructed and substantially renovated homes in B.C. purchased from a builder, where:
- a written agreement of purchase and sale is entered into on or after February 21, 2012 and before April 1, 2013,
- HST is payable on the purchase, and
- ownership or possession of the home is transferred before April 1, 2013.
Owner-built homesThe bonus is available for new owner-built homes, where:
- a written agreement of purchase and sale for the land is entered into on or after February 21, 2012, and
- construction of the home is substantially complete, or the home is occupied, before April 1, 2013.
Bonus CalculationThe bonus is equal to 5% of the purchase price of the home or, in the case of owner-built homes, 5% of the land and construction costs subject to HST. The maximum bonus is $10,000. The bonus is reduced based on an individual’s/couple’s net income (line 236 of your income tax return) using the following formula.
- For single individuals, the bonus is reduced by 20¢ for every dollar in net income over $150,000. The bonus is reduced to zero at $200,000 income.
- For couples, the bonus is reduced by 10¢ for every dollar in family net income over $150,000. The bonus is reduced to zero at $250,000 family net income.
Claiming the BonusIf you claimed the B.C. HST New Housing Rebate, you can apply for the bonus by completing the Application for the B.C. First-Time New Home Buyers’ Bonus (FIN 520) (PDF).
- For assistance, read How to Complete the Application for the B.C. First-Time New Home Buyers’ Bonus (FIN 520)
- A copy of your Notice of Assessment of Income Tax for the eligible tax year.
- A copy of your spouse or common-law partner’s Notice of Assessment for that year.
- A complete copy of:
- your GST/HST New Housing Rebate Application for Houses Purchased from a Builder (Form GST 190), including the GST 190 British Columbia Rebate Schedule (Form RC7190-BC) or
- your GST/HST New Housing Rebate Application for Owner-Built Houses (Form GST 191) including the GST 191 British Columbia Rebate Schedule (Form RC7191-BC).
- A copy of the final, signed purchase and sale agreement for your eligible new home, and/or the land, mobile home or floating home.
- A completed and signed Schedule A – Certification of B.C. First-Time New Home Buyers’ Bonus (FIN 520A) for each co-owner and/or your spouse or common-law partner. A completed schedule must be included for your spouse or common-law partner even if he or she is not an owner of the home.
AppealsYou have the right to appeal:
- Denied or reduced bonuses
- Your name, address and telephone number
- The decision in dispute
- The reasons for the appeal
- The facts on which the appeal is based
LegislationThe following legislation applies to the First Time Home Buyers’ Bonus:
- Income Tax Act (B.C.) Part 12
Leave a Comment
The Neal Estate Team is your #1 source for all of your Victoria BC real estate needs. Get in touch with us online or by phone at (250) 386-8181 to speak with a Victoria real estate buying or selling expert today. With decades of experience as a top selling Victoria REALTOR® and ranked in top 1% globally with over 4,000 transactions and $1 Billion SOLD, Ron Neal & The Neal Estate Team have the industry experience and market knowledge to help you make smart and informed buying or selling decisions.