Chapter 19 Taxes On Real Property

Question 1

Determines the real property tax rate for general tax purposes in organized territories of BC

Answer 1

Local municipal council

Question 2

Affects the real property taxation in BC

Answer 2

School act

Question 3

What are the taxes for real property?

Answer 3

GST, PTT, Property Tax, foreign buyer’s tax, vacancy tax

Question 4

GST is designed to apply to every transaction that is not specifically exempted from tax

Answer 4

Excise Tax Act

Question 5

Required to collect gst as an agent to the government

Answer 5

Sellers

Question 6

Where can the buyer claim gst back

Answer 6

Input tax credit

Question 7

What are the exemptions to pay gst upfront?

Answer 7

Commercial real property where gst is registered by closing

Non resident seller

Question 8

Two types of recovery mechanisms for gst

Answer 8

Input tax credit

Rebates

Question 9

New housing rebates

Answer 9

House bought less than 450,000

Question 10

Dispute resolution process to CRA of gst

Answer 10

You have 90 days
Appeals division
Tax court of canada
Federal court of appeal
Supreme court of canada

Question 11

Commercial - buyer has to report gst

Answer 11

Residential - seller collects gst

Question 12

No GST exemptions for residential housing

Answer 12

Exemption for sales by a person who’s not a builder (holds interest in real property while being constructed)

Question 13

Self supply rule

Answer 13

Builder moved into the home before sale

Question 14

Buyer: to include gst, if applicable

Answer 14

Seller: purchase price does not include gst, if applicable

Question 15

PTT

Answer 15

Transfer of interest of real property

The amount of tax is based on the fair market value at the date of registration, subject to any application exemptuons.

Question 16

PTT CALCULATIONS

Answer 16

1% - 200,000
2% - 200,000 to 2,000,000
3% - >2,000,000
If residential, extra 2% for >3,000,000

Question 17

Exemptions for PTT

Answer 17

🔵Related
🔵separation agreement under family law act
🔵Family farms

Question 18

PTT Exemptions under the first time home buyer’s program

Answer 18

🔵Canadian citizen or resident
🔵must have lived for atleast a year prior purchase
🔵FMV (fair market value)
less than 500,000
🔵not owned any property anywhere in the world
🔵must be used as a principle residence
🔵0.5 hectares or smaller

Question 19

PTT EXEMPTIONS

Answer 19

🔵first time home buyer should be less than 500,000 (partial: 25,000)
🔵newly built should be less than 750,000
🔵partial exemption can apply if over 750,000 but less than 800,000

Question 20

GST seller has an obligation to collect if residential

Answer 20

PTT the seller has no obligation to collect

Question 21

GST - appeal, tax court, federal court, supreme court

Answer 21

PTT supreme court of BC, bc appeal court, supreme court of canada

Question 22

FOREIGN BUYER’s tax

Answer 22

Extra 20% PTT
foreign nationals
Foreign corps
Taxable trustees

Question 23

Anti avoidance rule

Answer 23

Penalize any steps taken that are inconsistent with the spirit of the law

Question 24

If a canadian citizen’s spouse dies and leaves the title to family home to the surviving foreign national spouse

Answer 24

Foreign buyers tax might potentially apply to transfer title even though basic ptt would be relieved

Question 25

Foreign buyer’s tax

Answer 25

If within a year of purchase the individual becomes a citizen or resident, can apply for rebate and claim the tax paid

Question 26

Mill rate

Answer 26

Tax rate applies to each $1000 of net taxable value

Question 27

Net taxable value

Answer 27

Actual value of the real property as per the assessor, less any exemptions that apply

Question 28

BC ASSESSMENT

Answer 28

Assesses real property in BC

Question 29

School tax - every property is charged to share cost of providing education

Answer 29

Additional tax rate 0.2% between 3-4M

Additional 0.4% value exceeding 4M

Question 30

Owner as per Assessment act

Answer 30

Registered owner of life estate
Registered owned of estate in fee simple
Agreement for sale and purchase, the holder of last registered agreement
Holder or occupier

Question 31

Community charter

Answer 31

Person, in any yeat is assessed as owner of land, improvements or both, in a municipality or a taxable interest in them

Question 32

The only time a tenant is reliable for property tax payment

Answer 32

Is when occupying a crown or municipal land

Question 33

Two general catergories of taxable properties in bc

Answer 33

Land

Improvements

Question 34

Tax notice

Answer 34

July valuation date of assessment roll
Oct state and condition of property
Nov identify owner 
Dec notice sent out
Jan last date for review
March authenticate
April appeals

Question 35

Speculation Vacancy Act (SVT)

Answer 35

2% foreign buyers

0.5% citizens and residents not member of satellite family