New PTT Calculations are now available!

It’s no joke! Today, April 1, 2024, there are TWO major changes to the calculation of Property Transfer Tax in British Columbia.

We made sure our smart pricing app, PriceMyConveyance.com, is fully updated with the new PTT calculations. This newsletter describes what changed.

⬆️The First Time Home Buyers’ Exemption Went Up And Works Differently Now

Prior to today, the Fair Market Value (“FMV”) price had to be under $500,000.00 for a full First Time Home Buyers’ Exemption, and up to $525,000 for a partial exemption.

Now, the FMV can be up to $835,000 for a full exemption on the FIRST $500,000. A partial exemption is available for a FMV to $860,000.

A crucial change to understand is that, at most, $8,000 of PTT will be exempt, being the PTT payable on the first $500,000. PTT is payable on the FMV above $500,000.

For a FMV between $835,000 and $860,000, the partial exemption also applies on the maximum $8,000 exemption. For example, a FMV of $840,000 would normally be subject to $14,800 in PTT. However, a First Time Home Buyer is eligible for a partial exemption of $6,400, leaving $8,400 PTT payable.

🏗️The Newly Built Home Exemption Went Up 

The Newly Built Home Exemption remains conceptually the same, with increased thresholds. There’s no PTT on new builds with a FMV of up to $1,100,000 (up from $750,000) with partial exemptions are available on new builds with a FMV up to $1,150,000.

Unlike the updated First Time Home Buyers’ Exemption, this Newly Built Home Exemption is on the entire FMV, not the first $500,000.

These complex exemptions are a main reason we built PriceMyConveyance.com 

The Property Transfer Tax Act, RSBC 1996, c 378 has the algebraic formulae for the partial exemptions. We programmed these into PriceMyConveyance.com to make life easier for you.

In case you were wondering, here’s how the math actually works for the partial exemptions - easy, right? 🤣

⛳ Do you golf? Check out the PriceMyConveyance.com developer’s golf app!

PriceMyConveyance.com is programmed by longtime friend of the firm Travis Gritter. Please check out his innovative golf app Links League (linksleague.golf) and share it with your golf buddies. It’s like Strava for golf - use the GPS rangefinder, track your scores, and compete against your friends even when they play a different course. It’s completely FREE and available for Android and iOS.

Did You Know?

I offer real estate agents and mortgage brokers complimentary short phone consultations. Message me on WhatsApp, or book a call.

A reminder that Arora Zbar LLP has 4 lawyers offering services in real estate transactions, construction disputes, corporate law, commercial litigation, tenancy/strata disputes, and estate planning.

We offer services in English, Punjabi, and Farsi.

We are super transparent about pricing, check out our app at www.pricemyconveyance.com - it calculates property transfer tax, too!

Contrary to what people think, a lawyer is not more expensive than a notary. Remember that all lawyers are notaries, but notaries are not lawyers. In my experience, most notaries refer clients to a lawyer as soon as there’s a problem with a deal. Why not start with a lawyer?

Sincerely,

Eli Zbar

Lawyer

Arora Zbar LLP