I have 2.5 years living in BC, Canada and i am going to buy a house. Do I have to pay property transfer tax?
967461
If you are a "First Time Home Buyer" you may qualify for a full or partial exemption from the BC property transfer tax. The following conditions must be met in order to qualify for this exemption:\n\nTo qualify for the FTHB exemption, the transferee (purchaser) must be all of the following:\n\n•a Canadian citizen or a permanent resident as determined by Immigration Canada, \n\n•a person who has resided in British Columbia for 12 consecutive months immediately prior to the date of registration of the transfer, or who has filed two income tax returns as a British Columbia resident within the last six years, \n\n•a person who has never, at any time, held a registered interest in a principal residence anywhere in the world (a principal residence is defined as the usual place where an individual resides), and \n\n•a person who has not previously received an FTHB exemption or refund.\n\nFurther information can be found at the following BC Government website:\n\nhttp://www.rev.gov.bc.ca/rpt/ptt/pttbulletins/pttbul-index.htm\n\nTIMH
790336
Really complex area - some boffins spend all their lives looking into this.\n\nThe abbreviated answer is:\n* Yes, definitely if the property is less than three years old\n* Maybe if the property is more than three years old\n\nTechnically if a property is more than three years old it is exempt from VAT but the seller can waive this exemption (known as 'opting to tax') if they wish.  This will mean 17.5% VAT is charged on the sale (which the seller doesn't get to keep).  The reason the seller might do this is becuase if they sell a building and charge VAT they're allowed to reclaim VAT on any related costs (such as legal fees).\n\nOnce a building is 'opted' you can't change that status even if it changes hands. Therefore the next time its sold on VAT would have to be charged on the sale.\n\nThese rules only apply to commercial property - not residential.\n\nTrust me - get an accountant/tax adviser to assist - really complex area.
409772
yes you can  if  you use the  property as an investment as long  you pay the  taxes (in spain )  on the  property and  the  assigned mortgage.but you must  pay  taxes  here too.
379215
if you've lived in your current principle residence for at least 2 years out of last 5 years, then you have $250k tax free capital gain (or $500k for married couple). any gains over this amount will be taxed regardless whether you invest in another house or not.
227672
Actually, you have to live in the house for two of the last five years. If this is the case, then tax code allows you to keep $250K or $500K if married before capitol gains taxes apply.
1184514
To qualify for this exemption you must have lived the property as your personal residence for at least 24 month (2 yrs) of the last 5 yrs before the sale date.  You will be entitle to either $250K or $500.K depending on your marital status. I believe even individual owners, even if not married, assuming they meet the above  qualifications are entitle to the exemption---in fact I am pretty sure (Consult your tax attorney nevertheless).\n\nNote: 1031 exchange applies only to investment property, i.e., rentals, and not to personal real estate property.  Always consult your tax man!!!!!!!!!!! Best of luck! \n\nWhere one lives is of no consequence when it comes to federal income tax law unless an Indian reservation...where some federal tax laws may vary.
1113697
Maybe not, depending on how much you sold it for.  The law changed a few years back - until then, answer would have been yes.\n\nAssuming you owned and lived in the home for at least two years out of the five years before you sold the house, and you didn't exclude gain from another house in the 2 years before the sale, you can exclude up to $250,000 of the gain.  If you're married and file a joint return for the year of the sale, either you or your spouse owned the house for 2 years out of the 5 before the sale, both of you lived in the house for two of the five years before the sale, and neither of you excluded gain from another house within  2 years before the sale of this one, you can exclude $500,000 of the gain.\n\nIt doesn't matter anymore for tax purposes whether you invested the gain in another home.
706662
You relative will have to qualify with the lender and pay an assumption fee. If the assumption fee, which is probably hefty, is more than the difference between today's rate and the 5.5% on a monthly payment for more than 2 years, then it might not be worth it depending on how long they plan to keep the property. Also, this relative will not be able to take the tax advantages unless the lender recognizes him as the borrower. Be aware, that selling to him on paper without the written permission of the lender will trigger a "due on sale" clause and he will have to get a new loan. Also, to protect yourself, you must make sure the lender completely removes you from all responsibility. In most cases, if the new borrower defaults, they can still go back on you, so get the removal in writing. If this relative is a first-time buyer, meaning he hasn't made a property purchase in the last 2 or 3 years, he should look into some of the first-time buyers programs that will give a reduced rate. A lot of mortgages say they are not assumable, but I think you will find that if you go to the bank, they will work with the relative.\n\nThere is another way, but it is complicated and you will want to speak with a CPA with regard to tax consequences for all parties. It is called a wrap around mortgage. I think you will still have to keep your name on the deed to the house, though, in order to not trigger the "due on sale" clause. Start with the bank and please don't try to circumvent them. It could blow up on you.  The difference between a 5.5% and todays rate is substantial, so he should try it.
976939
YOU MAY WANT TO READ THIS ANSWER -- THE OTHERS ARE WRONG !!!\n\nYes, your understanding is correct that when you convert a rental property into a principal residence there may be capital gains consequences.\nIf you have never lived in this property but are contemplating doing so, what you need to do in order to determine whether there is a gain is to obtain a current "fair market value" of the property. In your case, you will want as low a value as possible, so get it appraised or ask a real estate agent to give you a potential selling price given the area, market values, and condition of house (so get this done BEFORE you make any repairs).\nTo determine if there is a CG : take the current FMV and subtract from it the price you purchased the house for (example....if you bought it for 80K and it is valued at 96K when you move in...then your gain is 16K) but from this 'gain' you get to subtract any costs or outlays you incurred (these include legal bills to purchase the property + land transfer taxes + appraisals + capital improvements to the property that were never expensed such as new furnace or new roof or new appliances etc....) so to continue the example...if these totalled 12K, then your CG would now be 16K - 12K = 4K...so you would need to pay tax on HALF of this gain or 2K. The tax would be whatever your tax rate is for your income level x 2K (21%, 31%, as high as 46%).\nIf your CG is actually negative, then there is NO tax owing as there is NO capital gain.\nAlso, here's a small but significant point, if you have not been claiming the rental income on your tax returns these past years, then you certainly would be foolish to all of a sudden claim capital gains.\n\nIn a nutshell, you will want to have as LOW a fair market value as you can currently, have as many outlays accounted for as possible (many of these will be found on the Statement of Adjustments from the lawyer at time of purchase -- also any bills for improvements) as these go to lessen the 'actual' or deemed gain.\nAlso, if you initially did live in the house for a time and then converted to rental...then this may be of benefit as when you converted to rental (there is no CG as it was primary residence) the FMV at that time becomes your ACB - Adjusted Cost Base, which you use to calculate the CG instead of the purchase price.\n\nAlso, be careful reading the advice some are giving -- they really sounded unknowledgable.
268081
u just pay there town for there taxes for there house. check with ur tranasstion lawyer
1095422
It depends on the type of inheritance you are receiving personal, corporate, trust, etc.\nYou also didn't state where your bank account is (U.S or Canada).\nTalk to an expert in inheritance laws, before you do anything you may regret later.\nGood luck to you!!
732763
Do yourself and them a favor, and hire a local attorney to do the paperwork and make the property transfer.  Better to pay a little now than a lot later.  Property interests are governed by a myriad of laws, and you don't know them.
832126
I think you have correctly identified a problem. \n\nUnder normal circumstances casual sales of property between individuals who reside in those provinces that have a retail sales tax (i.e., Ontario, Manitoba, Saskatchewan, BC and PEI) are not subject to PST. The reason for this is a practical one since it would be impossible to enforce the collection of tax on such sales. \n\nHowever,  motor vehicles are a different issue due to the need to register the ownership for licensing purposes.  In your case the first purchaser is technically liable for PST (not GST) on the initial purchase of the vehicle unless they are in the business of buying and selling vehicles and they have a registered identification number (RIN) that identifies them as a vehicle dealer. Assuming that this is not the case, there is a technical problem in that tax is owing on that sale. The government has no way of knowing this until such time as the second sale occurs and the transfer of ownership has to be declared and documented. From a practical point of view under the circumstances as described, it is the original owner of the vehicle that is going to have to sign the transfer of ownership to the second purchaser. The vehicle will be taxed based on its blue book value (which may be higher or lower than the actual transaction value) and the new owner will have to pay the tax in order to get new plates for the vehilce. The intervening owner could conceivably remain invisible to the tax authorities unless they ask for a bill of sale from the intervening owner that shows the second purchaser's purchase price. The descrepency between the party that signs the transfer of ownership for registration purposes and the person shown as the seller on the bill of sale could of course raise some questions. Whether or not the person at the vehicle registry office recognizes that this has sales tax implications is anyone's guess. You might get lucky since these people are not necessarily trained to look for or even consider such issues.
341493
I would contact a tax professional.\n\nYou might have to pay capital gains tax if it is not your primary residence, but I DO NOT KNOW. I would contact a tax professional.
659687
if you and your spouse lived in the property for 2 of the past 5 years, you each could exempt $250k from capital gains. another option is using a 1031 exchange to purchase another real estate investment that would defer capital gains and pay you tax advantaged income. consult your local independant financial advisor and you can get a list of 1031 properties. your tax advisor can project the tax for you. you should set aside the $ in a one year cd. good luck
463475
Depends on whether this is an investment property or your primary home.\n\nPrimary homes allow for a gain of up to 250,000 if you are single, 500,000 if you are married.\n\nIf this is an investment, you will have to pay capital gains if you do not do a 1031 exchange.  There are formulas to calcualting your gain and applicable taxes.\n\nYou can also choose to do a 1031 exchange, and defer capital gains taxes into another investment property.\n\nHere's a link to the capital gains calculator on my site:\nhttp://www.nnnstore.com/1031_capital_gains_calculator.php
399331
Unless you are planning to emigrate to the Caribbean, I suggest you get a mortgage in your Country of residence. You may loose a substantial amount of money over the years on currency exchange (if applicable) or at least with money transfers. Also, as a non resident you may end up paying much higher rates that you normally would in your home country. Good luck!