Speculation and Vacancy tax -
The details of the BC Speculation tax has just been released. Find out what you need to know about the tax, coming up next.
Many British Columbians own secondary homes. Watch this video as I go over the 8 things you should know about the Speculation and Vacancy Tax.
- 2nd Home must be rented for a period of a minimum 6 months per year.
- Airbnb deterrent - since most short term rentals are for periods of under 30 days this new tax basically eliminates Airbnb from most of BC.
- Yearly declaration is necessary to avoid paying this tax on your primary residence.
- BC Islands are exempt - B.C.’s islands are not part of the taxable area unless accessible by bridge, and reserve lands, treaty lands and lands of a self-governing Indigenous nation are also not part of the taxable region,
- This tax does not stop Real Estate Speculation ? So you are free to purchase real estate and flip it for a profit. Example condo Pre-sales and assignment of contracts.
- Municipalities have been rejected the option to opt of the speculation tax. Meaning locations such as Kelowna that depend on Alberta buyers can see their real estate market suffer.
- How is the Tax calculated - For a BC Resident or PR who lives in BC, with a high world wide income and paying very little BC Income tax will be charged 0.5 percent. For owners who are Canadian citizens and permanent residents who do not live in B.C., the tax is one per cent of assessed value, minus the credit — or $6,000 for an $800,000 Vancouver condo. For owners who are foreign investors or part of satellite families, the tax is two per cent of assessed value, minus the credit — or $14,000 for the $800,000 condo.
- Condos with rental restrictions are exempted from this tax. Their are many other exemptions which I will link up in the description.
So there you have the 8 things you need to know about the speculation tax. If you have any questions about this topic please feel free to reach out to me.
Question of the day, what do you think of this bc speculation tax? Should the Green Party and liberals vote it down? Please leave it in the comments below. I will try my best to personally answer all comments myself.